MONTREAL — The governor of the Bank of France said a lengthening the work week and other changes are needed to restore the competitiveness of European economies.
Christian Noyer told reporters at the Montreal Economic Conference on Monday that the relatively early retirement age and short work week for most workers are putting a strain on governments and weakening the competitiveness of businesses.
“It means that jobs are moving outside the country and the fiscal imbalance of the pension systems is impossible to attain with the increased duration of life if you retire too early,” Noyer said.
Different European countries are trying to tackle the challenges, including France which has already engaged in three pension reforms.
“All the countries have also started more or less decisively to reform their pension systems and we know that we need more flexibility in the working hours,” Noyer said.
In remarks prepared for the event, Noyer said economic growth has improved too little to significantly reduce high unemployment, especially among youth.
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