France: Lessons from Past Fiscal Consolidation Plans

27 Pages Posted: 2 May 2011

See all articles by E. Martin

E. Martin

International Monetary Fund (IMF)

Irina Tytell

Fidelity Investments; International Monetary Fund (IMF)

Edouard Martin

affiliation not provided to SSRN

Irina V. Yakadina

International Monetary Fund (IMF)

Date Written: April 2011

Abstract

This paper analyzes past fiscal consolidation plans and their outcomes in France. It covers the early attempts at fiscal consolidation in the 1970s and the 1980s (Plan Barre and Virage de la Rigueur), the first episode of medium-term fiscal consolidation in 1994-97 ahead of joining the European Economic and Monetary Union, and the fiscal consolidation under the corrective arm of the European Stability and Growth Pact in 2003-07. These experiences offer important lessons for the future, suggesting that binding constraints help focus policymakers’ attention and justify their actions; spending restraint needs to be shared and coordinated across all levels of government; and appropriate deficit targets could help in enforcing budgetary discipline in good times.

Keywords: Budget deficits, Fiscal analysis, Fiscal consolidation, Fiscal policy, France, Government expenditures, Public debt, Revenues

Suggested Citation

Martin, E. and Tytell, Irina and Martin, Edouard and Yakadina, Irina V., France: Lessons from Past Fiscal Consolidation Plans (April 2011). IMF Working Papers, Vol. , pp. 1-26, 2011. Available at SSRN: https://ssrn.com/abstract=1826542

E. Martin

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Irina Tytell (Contact Author)

Fidelity Investments ( email )

245 Summer Street
Boston, MA 02210
United States

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Edouard Martin

affiliation not provided to SSRN

No Address Available

Irina V. Yakadina

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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