France told to reform, cut more to spur growth

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Associated Press

Posted on March 19, 2013 at 8:01 AM

Updated Tuesday, Mar 19 at 8:04 AM

PARIS (AP) — The Organization for Economic Cooperation and Development says France needs to do more to reduce labor regulations, cut taxes and spending, and get young people into the workforce.

In an economic report on France released Tuesday, the economic watchdog said the country's economy with likely only grow 0.1 percent this year — significantly below the 0.8 percent the French government initially predicted. France is expected to soon revise that estimate.

The report noted that France has made some progress, including a proposal that would make it easier for companies to fire employees. But Secretary-General Angel Gurria said that more needs to be done to encourage companies to hire.

He said: "The performance in the labor market of young people and seniors is still the Achilles' heel."

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