Monday 13 October 2014

Is the dole too generous in France?

Unemployment benefit in France can be up to 90% of the net pay received when in employment and paid for up to 3 years, whereas in Britain it can be up to 88 euros per week for up to 183 days, with Germany and Spain somewhere in between. Simple black and white comparisons so beloved of politicians (and newspapers) would indicate that the French unemployed are cosseted so there is no incentive to seek work. A Minister caused waves this week by saying that 1 in 4 unemployed people in France were not looking for work.
But inevitably comparisons such as this omit to include other benefits that might be paid (in Britain housing benefit for example) so the black and white approach is usually wrong. The French system, like so many here, is supposed to be funded by "cotisations" by employers and employees and will usually run at a deficit. This is pretty much inevitable in a time of high unemployment and low growth and one wonders if the "deficits" of public services such as the health and social services should be treated as what they are - running costs to be financed from general taxation. Otherwise  a big increase in cotisations will be called for
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