Ms. Lagarde's challenge is persuading more French that a workhorse like Celine didn't get the bling by punching out after 35 hours.
The French labour laws and general mentality have stuck the country in a rut. Regulatory hurdles (lessons about which India should have well taught) force the flagship retailer Carrefour into expansion abroad rather than in the home country, while the President himself meddles with the economy by espousing a view of development as a function solely of factory work. It is outdated and counterproductive. A country without factories can have a blossoming economy through the services sector. A bank, a software engineering consultancy or a services centre are as good as a factory in creating wealth.
One of the reforms involves exempting small businesses from the bureaucracy by requiring only a statement of activity from them. Where's the catch?
In Ms. Lagarde's own words: "Someone who wants to sell flowers, design websites or give singing lessons will have only one document to fill out to declare their activity." That is, as long as that voice coach doesn't earn more than €27,000 ($42,750). At that point, the state's tentacles start squeezing again.
27K in Europe is a very small amount. If we include the taxes in the calculation the overall scope of the legislation is merely symbolic, because no-one can live on THAT income alone. Therefore this law would apply for small businesses that are part of a multi-job life, for those struggling to keep their lives free from the state's regulations and the labour unions' stranglehold. Opposition to such a symbolic move denotes granitic staleness in the French approach to work and economic growth in general.
Liberty is definitely coming to France. But it is excruciatingly slow. Maybe, though, this is the right path: the last time they went through sweeping change guillotiners had to work overtime. A 35 hour week surely wouldn't have sufficed!
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