However, many economists say that the greatest threat to France's economy is its stringent labor rules, which make firing difficult and expensive and thus deter hiring. The country has been losing global business for years to more dynamic economies like China's, while fighting unemployment of 10.8 percent and concerns about the future of the eurozone.The French government is currently leading negotiations between businesses and unions in the hopes of reforming labor rules by the end of the year.
Downgraded France Says It Needs More Time
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