## France: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

_IMF Staff Country Reports, July 24, 2019_

## Source details

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## Bibliographic details
- Published: July 24, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513508450.002

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### Overview
- The French government revamped vocational training and professional development to foster labor market participation, especially for low-skilled workers, following key labor tax and labor code reforms enacted in its first year in office.
- The report highlights the importance of carefully assessing the trade-offs and the proper sequencing of structural reforms and fiscal consolidation.
- The government’s structural reform agenda is being put in place and growth is expected to gradually return to its potential level over the medium run.

### Risks to the Outlook
- Elevated external risks: a disorderly Brexit, trade tensions, and a softening of activity in the euro area.
- Domestic risk: a slowdown in the domestic reform momentum.

### Structural Challenges Identified
- High public debt and spending.
- Rising private sector indebtedness.
- High unemployment.
- Inequality of opportunity.
- Sluggish productivity.

### Reform Priorities and Policy Recommendations
- Continue implementation of the government’s structural reform agenda, including vocational training and professional development measures targeted at low-skilled workers.
- Carefully assess trade-offs and sequence structural reforms alongside fiscal consolidation to avoid adverse interactions.
- Policies should aim at addressing France’s structural challenges (high public debt and spending, rising private sector indebtedness, high unemployment, inequality of opportunity, and sluggish productivity) while preserving reform momentum.

### Subject Areas and Keywords (as listed)
- Expenditure, Fiscal policy, Fiscal stance, Labor, Public debt
- authority, banking sector, CR, enforcement authority, Europe, Fiscal stance, France-Report on the Observance of Standards and Codes, Global, ISCR, labor market participation, money market rate, reform, unemployment benefit reform

*Source: France: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France (July 24, 2019).*

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_Source: https://www.imf.org/en/publications/cr/issues/2019/07/24/france-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-48523_