Exclusive: Worried Germany seeks study on French economy - sources | Reuters
German Finance Minister Wolfgang Schaeuble has asked a panel of advisers to look into reform proposals for France, concerned that weakness in the euro zone's second largest economy could come back to haunt Germany and the broader currency bloc.
"Concerns are growing given the lack of action of the French government in labor market reforms," Lars Feld, an economist who sits on the panel, told Reuters.
Although Schaeuble raised the prospect of a report on France with members of the council this week, Feld and the finance ministry made clear that the government had not submitted a formal request. The ministry declined comment on "unofficial discussions" of the minister's affairs in general
French President Francois Hollande, in office for roughly half a year, is under intense pressure to reform an economy that is losing competitiveness relative to its larger neighbor Germany and southern European countries that have enacted far-reaching measures in the euro crisis.
This week, in response to calls by industrialist Louis Gallois for cuts in labor charges to reverse decades of industrial decline, the government announced it would grant 20 billion euros in annual tax credits to companies as a way of lowering labor costs.
Is France heading towards catastrophe?
Maybe its a prejudice but when I think of overinflated bureuacracies and stifled labour markets France comes to mind.....
Then again to hvae survived this far relatively unharmed must prove that this is a resilient and sound economy. Doesn't it?