Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

OECD urges France to slash deficits

PARIS, April 28 – The Organisation for Economic Cooperation and Development on Tuesday urged France to rein in its ballooning public deficit as soon as a recovery is underway, using spending cuts instead of tax hikes.

France has said it expects its deficit to rise to 5.6 percent of gross domestic product (GDP) this year and remain at 5.2 percent next year.

But the OECD estimated in a report on France that the deficit this year would actually be 6.6 percent and would rocket up to 8.3 percent in 2010.

Under EU rules, France\’s deficit should be below three percent of GDP.

"Once the recovery is well underway, it will be necessary to urgently implement a programme for reducing the public deficit," the OECD said.

"Given the already very high level of taxes and compulsory contributions, the effort … will have to rely essentially on government spending cuts."

The OECD also urged France to increase employment opportunities for older workers, improve productivity to boost business and to consider limiting the scope of certain family allowances.

Overall, the OECD report said, the recession in France had been less painful than in other countries because of a strong social safety net.

But the OECD also warned that France depended on a global recovery to pick itself up and said its public finances would end up "in a serious condition."

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...