France

With short-term prospects somewhat brighter, and budgetary prospects improved, the OECD Economic Survey of France 2007 looks at some long-term challenges: the performance of policies for education and those for poverty and social exclusion is satisfactory or better in many areas, but cost-effectiveness can be improved and more focus on employment is needed. Policy has begun to prepare for the economic impact of population ageing, but there is no room to relax in seeking to contain fiscal costs and to increase employment among older workers.

Executive Summary Assessment and Recommendations Chapter 1. The Key Challenges Facing the French Economy -Poverty and Social Exclusion are Perceived as Important Problems -Education Should Use Resources More Efficiently -Progress Has Been Made in Dealing with Demographic Ageing, but Problems Remain -The Process of Government Decentralisation Raises Accountability and Efficiency Issues -Protecting the Environment is a Policy Priority, but It Could Be Done More Effectively -Other Structural Reform Annex: Progress in Structural Reform Chapter 2. Combating Poverty and Social Exclusion -Scale and Trends in Poverty and Social Exclusion -Employment, the Main Source of Social Exclusion -A Social Protection System which is Developed but not Fully Efficient -Increasing the Effectiveness of Policies to Promote Integration and Provide Support for the Jobless -Combatting the Spatial Concentration of Poverty and the Hysteresis Process -Specific Policies for Immigrants and Ethnic Minorities Annex: The French Social Protection System: Main Measures for the Disadvantaged Chapter 3. Enhancing Incentives to Improve Performance in the Education System -Education Policy Objectives and Main Issues -Education Organisation and Finance -Educational Achievement and its Variance -Pre-School and Primary Education -Teacher Training -Grade Repetition -Educational Priority Zones -Maintaining and Improving Educational Standards and Efficiency in Secondary Education -Higher Education -Conclusions and Recommendations Chapter 4. Coping with Demographic Ageing -Population Ageing, but Recently Rising Fertility -Employment -Ageing and Public Finance -Private Provision for Pensions and Dependence, and the Taxation of Saving Future Reforms Chapter 5. Meeting the Challenges of Decentralisation -The Growing Importance of Local Public Finances -The Main Characteristics of the system of Sub-National Government -Limiting Pressures on Government Spending -Making Sub-National Governments Accountable for Resources while at the Same Time Limiting Pressures on Taxes -Conclusion and Summary of Recommendations Glossary