FX.co ★ Hollande's reforms attract criticism

The International Monetary Fund criticized the reforms introduced by France's government. Being apprehensive about another economic recession, the IMF called on President of France Francois Hollande to slow the pace of the fiscal policy next year. “Given the still hesitant recovery, the government should ease the pace of adjustment,” it said in its annual health check. If the economic growth of France stalls, that will considerably affect the neighboring EU countries. According to the French economists, who are also dissatisfied with Hollande’s actions, the head of the state was just wishfully thinking and announced too soon that the crisis was over. The forecasts of the IMF analysts for the coming year are not so promising. For example, the jobless rate is expected to rise to 11.6% that is going to ruin the reputation of the politician, who, in his own opinion, bent the unemployment curve. Specialists advise Hollande to solve the budget deficit problem with the help of social spending cut, not fresh taxes. In France, levies are quite high and are the main obstacle to attracting investors and creating new workplaces. The coming year is supposed to be a turning point for the country. For the fist time in two years, the economy is expected to revive. Time will tell whether the president be able to maintain the indicators.