(Reuters) - French employer groups called on President Francois Hollande to speed up reforms and cut public spending to revive the ailing economy in a joint statement issued on Sunday ahead of an annual conference of government officials, employers and labor unions.
The conference on July 7-8 will focus on reform proposals, including Hollande's "responsibility pact" which offers companies 41 billion euros ($56 billion) in payroll tax cuts over three years in exchange for promises of more hiring.
Three employer groups - the largest group, Medef, small and medium-size companies group CGPME and farmers union FNSEA - have threatened to boycott the event over some of the proposals, such as using a tax on companies to compensate people with arduous jobs and a minimum 24 hours per week for part-time contracts aimed at securing jobs.
The three joined five other groups to publish a letter in weekly Journal du Dimanche in favor of general reform, without making concessions on specific demands.
"Due to the urgency of the situation we must act quickly, with determination and consistency," they said. The groups called for a clear and quick implementation of the responsibility pact with texts setting clear targets over the next three years to cut labor costs and taxes.
They also asked for a halt to all measures that would complicate their regulatory burden and for reforms enabling rapid and sustained cuts in public spending, noting that this would require looking into structural bottlenecks and touching some subjects that have previously been considered off-limits.
But French Economy Minister Arnaud Montebourg said the government was already tackling most of the call's requests. "I think we need to listen, some points are fair, some points are full of bad faith, it needs some sorting," Montebourg told BFMTV channel.
The euro zone's second-largest economy came to a standstill in the first quarter, official estimates showed on Friday, and economists say the outlook for the rest of the year is not encouraging, despite some gains in consumer spending in May.
Labor ministry data showed on Thursday the number of people out of a job in France hit a new record in May, undermining Hollande's pledge to bring unemployment down. Companies' confidence fell slightly against expectations over the same period.
reuters.com
The conference on July 7-8 will focus on reform proposals, including Hollande's "responsibility pact" which offers companies 41 billion euros ($56 billion) in payroll tax cuts over three years in exchange for promises of more hiring.
Three employer groups - the largest group, Medef, small and medium-size companies group CGPME and farmers union FNSEA - have threatened to boycott the event over some of the proposals, such as using a tax on companies to compensate people with arduous jobs and a minimum 24 hours per week for part-time contracts aimed at securing jobs.
The three joined five other groups to publish a letter in weekly Journal du Dimanche in favor of general reform, without making concessions on specific demands.
"Due to the urgency of the situation we must act quickly, with determination and consistency," they said. The groups called for a clear and quick implementation of the responsibility pact with texts setting clear targets over the next three years to cut labor costs and taxes.
They also asked for a halt to all measures that would complicate their regulatory burden and for reforms enabling rapid and sustained cuts in public spending, noting that this would require looking into structural bottlenecks and touching some subjects that have previously been considered off-limits.
But French Economy Minister Arnaud Montebourg said the government was already tackling most of the call's requests. "I think we need to listen, some points are fair, some points are full of bad faith, it needs some sorting," Montebourg told BFMTV channel.
The euro zone's second-largest economy came to a standstill in the first quarter, official estimates showed on Friday, and economists say the outlook for the rest of the year is not encouraging, despite some gains in consumer spending in May.
Labor ministry data showed on Thursday the number of people out of a job in France hit a new record in May, undermining Hollande's pledge to bring unemployment down. Companies' confidence fell slightly against expectations over the same period.
reuters.com
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