Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

'New York Post' slammed for publishing ISIS execution images

Read more

DEBATE

Back to Square One?

Read more

DEBATE

Israel-Gaza: Back to Square One?

Read more

DEBATE

Israel-Gaza conflict: 72-hour ceasefire deal sets stage for Cairo talks

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

FOCUS

Spain's El Hierro to become world's first self-powered island

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Luc Besson back in action with Scarlett Johansson in 'Lucy'

Read more

FOCUS

Israel's minorities and military service

Read more

  • US forces tried to rescue slain reporter from IS captors

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • US attorney general visits Missouri town after fatal shooting

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Brazil’s Silva launches bid after Campos plane crash death

    Read more

  • Netanyahu compares Hamas to IS, Gaza offensive to continue

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • France’s ex-PM Juppé sets up presidential clash with Sarkozy

    Read more

  • France’s Hollande says global security ‘worst since 2001’

    Read more

  • France urges Iran, others in region, to join fight against IS

    Read more

  • A new view on Normandy landings, 70 years on

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

  • Suspected Ebola cases in Austria, new drug raises hopes

    Read more

  • WWII anniversary highlights best - and worst - of Paris police

    Read more

France

Social welfare needs funding reform, French PM says

Text by News Wires

Latest update : 2012-07-10

French Prime Minister Jean-Marc Ayrault said Tuesday on day two of a conference between government ministers, unions and business leaders that the country needed to be more creative in finding sources of funding for social welfare programmes.

AFP - France will make legislative changes next year to how it funds social programmes in a bid to lower labour costs and boost competitiveness, Prime Minister Jean-Marc Ayrault said on Tuesday.

Speaking at the end of a two-day conference gathering unions and employers, Ayrault said the country needed to reform its system of using payroll charges to fund social welfare programmes.

"The government will initiate a dialogue with its social partners, with the goal of legislative reform in 2013," Ayrault said.

"As regards the financing of our welfare system, prospects must quickly be found, as much to ensure the future of social welfare as to increase the competitiveness of our businesses," he said.

He said a number of options would be considered "to increase and diversify sources of funding" for social programmes.

France's trade deficit remains high and ministers in Socialist President Francois Hollande's new government have raised concerns that low competitiveness is stifling the economy and hampering job creation.

The government has scrapped a plan of former president Nicolas Sarkozy, who Hollande defeated in May, to lower employer social charges by compensating with an increase in the value-added tax.

It is said to instead be considering an increase in the CSG, a complimentary social tax that applies to other incomes including investments, rental revenues and capital gains.

Hollande opened the conference Monday urging unions and employers to adopt a culture of compromise to kickstart the country's stagnant economy, which is expected to contract in the second quarter.

 

Date created : 2012-07-10

  • FRANCE - ECONOMY

    Hollande urges culture of compromise between unions, employers

    Read more

  • FRANCE

    France needs €43 billion to meet 2013 deficit targets

    Read more

  • EUROZONE

    EU leaders seek to avert euro collapse at key summit

    Read more

COMMENT(S)