Hollande Unveils Government’s Plan to Modernize

François Hollande. Photo: Flickr.com/jmayrault

François Hollande.
Photo: Flickr.com/jmayrault

In the wake of French President François Hollande announcement of “choc de simplification” (“simplification shock”), work of the third meeting of the Comité interministériel de Modernisation de l’action publique (Interministerial Committee for the Modernatizion of Public Services) will be implemented this week. This “simplification” takes its nickname from the newly announced administrative cuts that could be as high as 80% in some sectors.

The purpose of the bill, which includes some 201 measures, is to simplify France’s notoriously complicated bureaucratic process for businesses. Such cuts are intended to benefit small companies struggling with complex and expensive bureaucratic paperwork.

This is not Hollande’s first attempt to save face by scaling back spending. The announcement arrives after the president’s March decision to levy a 75% “supertax” on incomes of 1 million euros or higher. Implementation of the cuts should make paperwork for both companies and individuals more straightforward.

Socialist Thierry Mandon had previously written of the “11 Key Moments in the Life of a Company,” explicitly stating that simplification reforms should be top priority for the national government. Mandon also wrote that a more straightforward administration would be beneficial for the average citizen, a concept that has been included in the final bill. Among other examples, the validity of the Carte d’identité is to be extended from 10 to 15 years.

The government will also simplify real estate procedures, while simultaneously lightening the accounting load on businesses by encouraging digitization.

The overarching goal of the “shock” is to reduce overall government spending by nearly 3 billion euros by the end of 2015.

The French Senate will be examining the bill during the last two weeks of July. Should it pass, the bill will not only allow companies to cut back on enormous amounts of paperwork, but also make fiscal room for investment and growth in other sectors of the economy.

The announcement follows Hollande’s Bastille Day interview, in which he informed a skeptical French public that the nation’s “economic recovery is [finally] here.”

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  1. […] wake of President François Hollande’s announcement of a “simplification shock,” work of the third meeting of the Interministerial Committee for the Modernatizion of Public Services will be implemented this week. This “simplification” takes its nickname from the newly […]

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