The Organization for Economic Cooperation and Development (OECD) has called on France to restructure its tax system in order to fuel growth. It also urged Paris to reduce the size of its public sector.
The OECD on Tuesday trimmed its forecast for France, saying it expected the eurozone's second-largest economy to grow by just 0.1 percent this year instead of the 0.3 percent it had predicted earlier.
The umbrella organization for the world's most industrialized nations said France's public deficit would come in at 3.5 percent, thus contradicting assessments by the government in Paris which had pledged to return to the 3-percent EU deficit ceiling in 2013.
"Deficit reduction efforts must continue as planned while letting automatic stabilizers operate fully," the report said.
Leaner state recommended
But while urging Paris to keep spending at bay, the OECD recommended a shift in taxes away from levies on businesses and labor with a view to boosting competitiveness and growth.