France's economic reform is mixed.

The Organization for Economic Cooperation and Development (OECD) recently released a report saying that the current economic reforms implemented by the French government will boost GDP per capita by 3.2% in 10 years, but warned that the French executive still lacks the policy determination to reduce public expenditure.

The OECD made an assessment of the current economic operation and development trend of France in this biennial national economic assessment report, and submitted the relevant recommendations to the French Ministry of Economy. The report gives a relatively positive evaluation of the reforms carried out by the French government, pointing out that the economic reforms carried out by the Macron government are gradually playing a positive role.

OECD experts assessed that the current reform implemented by the French government would benefit more middle-income and low-income families. Meanwhile, France's potential economic growth rate will reach about 1.5% annually, which will have a positive impact on European economic development. OECD Secretary-General Guria praised the French government for pursuing an "ambitious" reform. French Minister of Economy Lemmel pointed out that the official forecasts of international organizations were basically in line with the expectations of the French government. According to the report, the recent reforms implemented by the French government have shown two bright spots. Firstly, public tax credits for employment competitiveness have effectively reduced the burden on the public, and various "extinguishing" measures since the Great Debate have also ensured the smooth development of the "yellow vest" movement. OECD experts point out that the government has improved the employment situation and disposable income of low-income groups in the labor market by further reducing labor costs and increasing job subsidies. Second, in order to combat the abuse of short-term contracts by enterprises, the French government introduced the "reward and punishment system" to regulate the proportion of social contribution paid by employers. According to the number of contracts registered by enterprises in employment centers, the proportion of collection is determined. The more short-term contracts used by enterprises, the higher the amount of contribution paid. In this regard, OECD experts suggest that short-term contract recruitment costs should be relatively increased, and the unemployment insurance system should be reformed to prevent the recurrence of unemployment rate in the short term.

However, the report also warns about the risks in French economic reform. Firstly, the reduction of public expenditure is inadequate. The report points out that France's public finances have not been effectively improved, and the government's measures to reduce public expenditure are inadequate. Lawrence Boone, the chief economist of OECD and former economic adviser to the Orlande government, believes that the French government should introduce special measures as soon as possible to effectively control public expenditure and improve the mechanism of Expenditure Review and distribution. The French government must take more effective measures to cut public spending. At present, the huge scale of public expenditure obviously increases the tax burden of the government, directly restricts the creation of employment opportunities and leads to inefficiency of the labor market. In this regard, OECD suggests that social expenditure and public investment, such as administrative overtime tax exemption, should be treated more carefully, which may have negative effects on employment. Second, the lack of competitiveness. OECD believes that training and education is the second most pressing problem for the French government. At present, how many low-skilled workers and young people have been excluded from the labor market in the field of employment in France, and there is a huge gap between the qualifications of workers. Third, occupational restrictions restrict the development of productive forces. The report points out that in some regulated industries, such as accountants, notaries and pharmacists, entry and occupational standards are still too high, which has a negative impact on productivity and employment.