France has shown resilience to recent global shocks, but GDP per capita growth is lagging that in leading OECD economies. Further increasing the employment of older and younger workers, alongside stronger industrial competitiveness, would enhance France’s growth potential. This calls for more effective innovation policies, increased investment in skills, and lower production taxes. It also requires stronger resilience to supply chain risks, the decarbonation transition, and rapid technological change. Putting the public debt ratio on a clear downward path is another pressing priority. This will require greater spending efficiency and phasing out ineffective tax expenditures, while reducing the most distortive taxes. Two other long-term priorities are the ageing population and the climate transition. Better quality long-term care would benefit from improved working conditions for care workers, and enhanced efficiency through greater targeting and preventive care. Efforts should accelerate to lower greenhouse gas emissions and adapt to climate risks through stronger carbon price signals, targeted support for vulnerable households, and reinforced local adaptation strategies.
SPECIAL FEATURES: PUTTING PUBLIC FINANCES ON A SUSTAINABLE PATH WHILE BOOSTING LONG-TERM GROWTH, ENSURING QUALITY AND EFFICIENT LONG-TERM CARE, SUPPORTING CLIMATE CHANGE MITIGATION AND ADAPTATION, STRENGTHENING INDUSTRIAL COMPETITIVENESS
