France

[Toro]

NOVEMBER 1, 2004    •  Editions: N. America | Europe | Asia | Edition Preference

EUROPEAN BUSINESS

...But A Harsh Diagnosis For Europe

The Continent is finally waking up to the policies that constrain it

During his 13-year stint as the head of the International Monetary Fund, Michel Camdessus perfected the art of dressing down the world's budget-busters and fiscal profligates. Now it is the turn of Camdessus' native land, France, to come in for an earful of criticism. Charged by the French government five months ago to look into why France can't boost its economic growth rate, Camdessus delivered a withering critique of Gallic business as usual when he unveiled his report on Oct. 19. Without radical changes to the status quo -- from the short workweeks to chronic underfunding of higher education -- the decline of France "will be irreversible in 10 years," says Camdessus.

Remainder of post removed due to copyright infringment.

http://www.businessweek.com/magazine/conte...06821_mz054.htm

Edited November 7, 2005 by Greg

[Montgomery Burns]

I understand that it is very difficult to fire someone in France. It is not a very business-friendly place. Additionally they get 11 statutory holidays per year, plus 5 or 6 weeks vacation per year.

Just think how costly that is for an employer.

[Toro]

A couple of years ago, a Belgian maker of appliances tried to shut down a plant in northern France. The workers occupied the plant and took members of management hostage. So the government sent in a mediator, who was also promptly taken hostage. Chirac recently warned Hewlett Packard that they cannot make any job cuts in France. This helps explain why economic and job growth has been so weak in that country.