By Anna Willard
PARIS, Jan 21 (Reuters) – President Nicolas Sarkozy will this week consider a report he commissioned to “unleash growth” but critics say the 300 ideas do not address French worries over spending power and many are too controversial to be used.
Sarkozy has promised faster economic growth but last week his government said it would reach only the bottom end of the official 2.0 to 2.5 percent forecast this year. Many economists think even that is optimistic just as they believe the same target for 2007 will be missed.
A commission set up by Sarkozy last August suggests cutting public spending, scrapping a 218-year-old system of administrative departments, and making it easier to become a hairdresser, vet or taxi driver.
The commission is headed by Jacques Attali, who served former Socialist President Francois Mitterrand and was the first head of the European Bank for Reconstruction and Development.
He will unveil the report on Wednesday but details have been widely leaked in the press although the commission has warned that these do not represent the report’s final version.
Sarkozy has promised to take on board, at least partially, the ideas in the report in a new law to modernise the economy.
But some proposals are unlikely to win support or they run counter to his own policies. Others are already being studied.
Among the most radical ideas is a plan to scrap the 100 administrative departments to remove a layer of the bureaucracy for which France is famous — a suggestion that is likely to meet resistance in some areas of the government.
The report also suggests increasing immigration — an idea that is contrary to Sarkozy’s plan for immigrant quotas.
SHOCK STEPS
Of the 300 suggestions, the commission has singled out 20 shock steps that it thinks should be put in place immediately.
These include improving education, backing new economic sectors such as technology, building 10 new eco towns, and improving infrastructure and high-speed internet access.
It also suggests reforming union representativeness, an idea already up for talks with the government and unions, and freeing up professions such as hairdressing and taxi driving that are subject to strict regulation.
The commission also proposes trimming public spending to reach a cut of 1 percent of gross domestic product by 2009 and cutting social charges paid by workers to boost net salaries and spending power, while at the same time raising value-added tax.
Polls show the number one concern of French people is a perceived lack of spending power due to rising energy, housing and food costs and stagnating salaries.
Critics say the report does not address this problem.
“It lists 317 measures but not a single one on salaries, not a single word,” said Socialist deputy Benoit Hamon on Canal+ Television.
“They want to boost the economy, but they’re not doing anything for French people’s wallets.” (Reuters)
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