France reduces bureaucracy and company costs

A commission set up in France to help reduce the bureaucracy in the economy announced 50 measures that should lead to decrease the corporate costs with billions of euros, by eliminating certain absurd provisions as bakers obligation to inform the police about holiday plans. 

The 50 measures should bring more clarity to complex rules that govern the economic work done in France and prevents the development of companies, writes The New York Times.

The Commission was established by President Francois Hollande as part of a wider program to support economic recovery, which provides for the reduction of €30 billion from labor costs for companies in France during his tenure. Also, the French government announced in tax cuts for corporations, in April. 

The French companies' profit margins are among the lowest in the euro area. Hollande, faced an unemployment rate of over 10%, hopes that the taken measures to stimulate employment after similar initiatives will have had good results in the UK and Germany. The French Commission proposed amendments that should enter into force by the end of the year.

Other proposals should make life easier by standardizing terms, as well as reducing the number of agents that currently collect social contributions from 200 companies, to about 20.

Restructuring agencies could take two years, Mandon said. Entrepreneurs will be able to easily record companies, while small businesses will not be forced to file dozens of documents in duplicate at several administrative centers to participate in an auction organized by state. 

The Commission intends to propose new simplification every six months until the end of Hollande's mandate in 2017, the next set being scheduled for September.