{
  "title": "France: Lessons from Past Fiscal Consolidation Plans",
  "publication": "IMF Working Papers, April 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/france-lessons-from-past-fiscal-consolidation-plans-24809",
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  "summary": "This paper analyzes past fiscal consolidation plans and their outcomes in France. It covers the early attempts at fiscal consolidation in the 1970s and the 1980s (Plan Barre and Virage de la Rigueur), the first episode of medium-term fiscal consolidation in 1994-97 ahead of joining the European Econ",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This paper analyzes past fiscal consolidation plans and their outcomes in France.\n- It covers:\n  - the early attempts at fiscal consolidation in the 1970s and the 1980s (Plan Barre and Virage de la Rigueur),\n  - the first episode of medium-term fiscal consolidation in 1994-97 ahead of joining the European Economic and Monetary Union,\n  - the fiscal consolidation under the corrective arm of the European Stability and Growth Pact in 2003-07.\n- The experiences offer lessons for future consolidation strategies, suggesting:\n  - binding constraints help focus policymakers’ attention and justify their actions;\n  - spending restraint needs to be shared and coordinated across all levels of government;\n  - appropriate deficit targets could help in enforcing budgetary discipline in good times."
    },
    {
      "heading": "Historical episodes analyzed",
      "content": "- 1970s and 1980s: Plan Barre and Virage de la Rigueur.\n- 1994-97: Medium-term fiscal consolidation ahead of joining the European Economic and Monetary Union.\n- 2003-07: Fiscal consolidation under the corrective arm of the European Stability and Growth Pact."
    },
    {
      "heading": "Key findings and implications",
      "content": "- Binding constraints:\n  - Help focus policymakers’ attention.\n  - Provide justification for consolidation measures.\n- Spending restraint:\n  - Needs to be shared across all levels of government.\n  - Requires coordination to be effective.\n- Deficit targets:\n  - Appropriate deficit targets could help enforce budgetary discipline in good times."
    },
    {
      "heading": "Policy recommendations (derived from lessons)",
      "content": "- Use clearly defined, binding constraints to focus policy action and legitimize reforms.\n- Coordinate spending restraint across central and subnational governments to avoid displacement.\n- Set appropriate deficit targets to maintain discipline during economic expansions.\n\n---\n\n Content in this bundle\n\n- wp1189 - References\n  - wp1189 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1189 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/france-lessons-from-past-fiscal-consolidation-plans-24809"
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    "Authors: Edouard Martin, Irina Yakadina, Irina Tytell",
    "Published: April 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455233151.001",
    "This paper analyzes past fiscal consolidation plans and their outcomes in France.",
    "It covers:",
    "The experiences offer lessons for future consolidation strategies, suggesting:",
    "1970s and 1980s: Plan Barre and Virage de la Rigueur.",
    "1994-97: Medium-term fiscal consolidation ahead of joining the European Economic and Monetary Union.",
    "2003-07: Fiscal consolidation under the corrective arm of the European Stability and Growth Pact.",
    "Binding constraints:",
    "Spending restraint:",
    "Deficit targets:",
    "Use clearly defined, binding constraints to focus policy action and legitimize reforms.",
    "Coordinate spending restraint across central and subnational governments to avoid displacement.",
    "Set appropriate deficit targets to maintain discipline during economic expansions.",
    "**_wp1189 - References**"
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