France – Germany: proposals for labor market reform in France and Germany contained in Pisani-Ferry and Enderlein’s report for renewing growth in Europe

On 27 November the report titled ‘Reforms, Investment and Growth: An agenda for France, Germany and Europe’, written by French and German economists Jean Pisani-Ferry and Henrik Enderlein. The report, in which the economists make joint proposals aimed at helping Europe avoid a “stagnation trap”, has been given to their sponsors, the French and German economy ministers Emmanuel Macron and Sigmar Gabriel. Here we can look into the suggestions which affect the labor market. The report is aimed at demonstrating the will of both governments to reignite the Franco-German partnership as the driving force of the European economy.

Through . Published on 28 November 2014 à 16h05 - Update on 01 December 2014 à 9h27

Reforms in France. The report advises France to continue its reform efforts, concentrating on three priorities.

1) The first is to create a model of “flexicurity”, beginning with increasing flexibility within companies, which are less able to adjust to economic fluctuations compared to their German equivalents. To this end, the report advises the loosening of the rules on ‘job preservation agreements’ (which allow companies “facing severe economic difficulties” to make provisional changes to wages,…

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