France Must Accelerate Reform Pace: Business Leaders

CEOs worldwide may be eyeing China right now, but European business leaders are also concerned about rumblings in an economy closer to home.

France’s economy has struggled to gather pace and this week, French Prime Minister Manuel Valls promised to step up the pace of economic reforms and make the French labor market more flexible.

August’s flurry of economic data shows an ongoing recovery, but one that lacks strong momentum. The INSEE business climate index showed that confidence inched higher in August, while the Markit purchasing managers’ index (PMI) showed business activity continuing to rise, but at a slightly slower rate than in the previous month.

Data out on Wednesday showed that France’s stubbornly high unemployment level crept lower in July. But economic growth flatlined in the second quarter.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.