The French economy is expanding, the labour market is recovering – albeit gradually - while productivity and the standard of living remain generally high, according to a new OECD report.
GDP is set to grow by at least 1.6% in 2017-18, supported by private consumption and investment. The labour market is improving, but productivity gains are too low to sustain the current level of social protection, high-quality public services and rising incomes in the long run.
France has a significantly low-carbon electricity mix, owing to the key role of nuclear energy. However, much of France’s nuclear fleet is reaching the end of its lifetime. Against this background, France has started an ambitious energy transition: it is a world leader in designing a governance framework with a national low-carbon strategy, carbon budgets, a carbon price trajectory and plans for energy investment.
France plans to reduce the share of nuclear to 50% in the electricity mix by 2025. While some nuclear reactors may continue long-term operation under safe conditions, maintaining security of supply and a low-carbon footprint while reducing nuclear energy will require investments in renewable energy and efficiency. The 2016 IEA review of France’s energy policies highlights these and several other areas that are critical to the success of the energy transition. For example, planned growth of the share of electric vehicles and variable renewable electricity will require enhanced power system operation and flexibility, including demand-side response, smart grids and metering, and more interconnections.
The financing of this transition depends upon continued carbon price signals, increasingly open markets, competition, and consumer empowerment in gas and electricity retail markets.
This review analyses the energy policy challenges facing France and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.
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After a small decrease during the second half of 2015, unemployment has been stabilising in France over the past year, but at 9.5% of the labour force in April, it remains high and well above its level before the financial crisis (7.3% in March 2008). In most other OECD countries, labour market conditions have shown stronger improvements.
We are about to make tax treaty history! Before you lies the first ever multilateral instrument capable of amending bilateral tax treaties: the Multilateral Convention on Tax Treaty Related Measures to Prevent BEPS. Tonight, more than 70 countries have come together to become Parties to the Convention, with more expected to follow in the coming months.
OECD Week 2017, that includes the Forum (6-7 June), the Meeting of the OECD Council at Ministerial Level (7-8 June), as well as other meetings, placed a central emphasis on "Bridging Divides" and on policies that could deliver a more inclusive globalisation, to respond to growing citizens’ concerns that globalisation has not benefitted fairly to all.
I am delighted to open this joint OECD-European Commission conference on Strategic Public Procurement. We are honoured to welcome leaders and experts from so many different policy communities and nationalities here today.
"I have extended my sincerest congratulations to Mr Macron on his election as President of the French Republic," Mr Gurría said from Paris. "The values of openness and understanding that he represents are at the core of the OECD's mission. We look forward to working closely with President Macron to better shape globalisation to make it work for all, promoting better lives in France, Europe and worldwide."
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France had the 4th highest tax wedge among the 35 OECD member countries in 2016. The country had the 5th highest position in 2015. The average single worker in France faced a tax wedge of 48.1% in 2016 compared with the OECD average of 36.0%.
These country specific notes provide figures and commentary from the Taxation and Skills publication that examines how tax policy can encourage skills development in OECD countries.