Competing over Competitiveness

And so Louis finally handed in his report.  Mr Gallois, who faced, as I have blogged previously, the difficult decision of what medicine to prescribe to an obviously ill patient, published his report on French competitiveness yesterday.  The report was met with suspicion by trades-union, acclaim by the right, the centre and employers’ associations, and consternation by the government.

Ruled out immediately was the suggestion to pursue research into shale gas – a big no-no for the Greens.  However the key measure – finding some other source of financing the social security system by reducing employers’ and employees’ payroll taxes by 20 and 10 million euros respectively – has no become an unquestioned dogma in French politics.  The question is how to pay for it.  So who will the government stick with the bill? Continue reading