Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Media response to Ottawa shooting

Read more

IN THE PAPERS

"Canada's Coverage of the Ottawa Shootings Put American Cable News to Shame"

Read more

IN THE PAPERS

Manuel Valls and the "art of putting one’s foot in one’s mouth"

Read more

THE BUSINESS INTERVIEW

Daniele Balice, Co-founder of the gallery Balice Hertling

Read more

FOCUS

Tunisia: Religious education claims bigger role in curriculum

Read more

BUSINESS DAILY

Budget tensions heat up in Brussels as EU leaders meet for second day

Read more

DEBATE

Canada's jihadists: Country in shock after spate of attacks (part 2)

Read more

DEBATE

Canada's jihadists: Country in shock after spate of attacks

Read more

AFRICA NEWS

Burkina Faso: Government seeks referendum

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)