Emanuel Macron Begins his Reforms with the French Labor Code
Emanuel Macron looks set to test the French labor code after the government announced sweeping changes this week. In these changes, there will be a shift of power between the employers and the workers. At the moment, employees have a say in the hiring and the firing process in the country. Experts say that this might be the reason why many companies in France fear hiring new employees. However, this is just the beginning for Emanuel Macron and his government as there are more steps that they should implement if the French economy is to galvanize. This is a move that has been welcomed by European capitalists who believe that the European Union survival partly depends on France. For starters, the French labor law is referred to as the Code du Travail and was the reason why Macron defeated the old political order. Also, his desire to make reforms in this sector has seen his approval ratings fall by a rate that has never been seen before. According to European and French economists, the president acted at the right time following his election as people in the nation are likely to be receptive to this change. There is a lot of optimism following these reforms.
For over two decades, the economic stagnation in the country has been blamed on expensive benefits coupled with worker protections. However, there are fears by some economists who think that the government is over stepping its boundary. The power given to the employers will most probably bring an end to the power of unions which will likely lead to a nationwide strike. According to the French Media, the new law gives employers the power to fire and hire workers. At the same time, they eliminate the need for national unions in negotiating some issues that could have been handled at the company level. At the end of the day, this will spark growth through job creation. This new law has paid close emphasis on small French businesses that have less than 50 people. A University of Aix-Marseille economist known as Gilbert Cette says that this change will be crucial in making the French labor market functional. History tells us that France and Germany had same economies 15 years ago. However, France was left behind as Germany was able to implement micro-reforms. This failure caused France to experience the high unemployment rate they currently experience. This was made possible as they devoured on populism.
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