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It overhauled a rigid labor market and raised the retirement age to 67 with little fuss.
Sweden has learned that a rigid labor market is a devastating form of exclusion (France, take note).
The law should go a long way toward shaking up a rigid labor code that was set in the 1950's by President Juan Domingo Peron.
We Americans often see Europe as being a place not exactly friendly to business, with a rigid labor market and difficulties in financing companies.
S.& P. kept a negative outlook for France, citing its high government debt, and a rigid labor market that has helped keep the unemployment rate high, at around 9 percent.
While France retains a reputation for a rigid labor market, many of the executive said Monday that this was often outweighed by positive factors, including a large domestic market, low-cost energy, good infrastructure and well-trained workers.
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Stefano Scarpetta, head of the labor division at the Organization for Economic Cooperation and Development, said the French appeared to be learning from the example set by Germany, where companies faced with a less rigid labor code have better weathered the recent crises and where unemployment, at 5.3 percent, is half the level in France.
Though capacity is no longer a problem, rigid labor contracts and bloated payrolls make the power companies inefficient, with the result that residential electricity costs are nearly twice as high on average as in the U.S.
In spite of a growing economy, rigid labor laws keep unemployment stubbornly high, at 26%.
The country is seen as a risk because of rigid labor regulations and other rules that critics say suppress entrepreneurship.
"These deficiencies include a lack of competitiveness, rigid labor markets and the failure to seize opportunities for growth," he said.
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