"Our country is competitive, but for an investor wishing to come to France, the overall high cost of work and inflexibility of the work market remain as key obstacles," French minister for economy and employment Christine Lagarde said in an interview.
In the interview published on Thursday's edition of French daily "Le Monde," Lagarde said"if we manage to introduce more flexibility and fluidity in the work market, which does not necessarily mean less protection for the employee, and if we lower the overall cost of work, we shall gain a lot in terms of appeal."
In spite of a recent resurge, employment rate in France has not slipped down to below 8 percent of the active population in the last 20 years or so.
To rectify this situation, the government intends to achieve full-time jobs by 2012, said the minister.
The national assembly last week adopted a law on labor, employment and purchasing power presented by the government according to which, overtime hours will be deducted from the worker's taxable payroll.
Social contributions on these hours will be reduced for both the employee and the employer, and remuneration will be higher by 25 percent to that of normal hours in all companies, instead of 10 percent in companies currently employing more than 20 workers. These measures will take effect from October 1, 2007.
Source: Xinhua
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