Labor Market Reforms in France
Matt Browne notes:
“During his
election campaign, Macron vowed to cut unemployment to 7 percent by 2022. As
president, he proposes tackling unemployment by simplifying corporate
governance and easing social dialogue, particularly in small and medium-sized
enterprises, where it will also be easier to hire and fire employees. Like
former German Chancellor Gerhard Schröder, whose Agenda 2010 and Hartz reforms
were criticized by opponents on the left and right, Macron’s reforms have
raised concerns among trade unions and the investment community alike.
With this, in
Germany and now in France, we are witnessing the transition from the solidarity
and security of the mass industrial age to the fragmentation and insecurity of
the new economy, shaped by globalization and what in Europe is still an
incipient digital revolution. As Macron and Schröder recognize, large welfare
states must be able to compete in the global economy to pay for themselves.”