7 February 2006, 12:31  OECD Sees Little Progress In Persuading Europeans To Work

The European Union has done little over the past year to raise the proportion of its population that works, the Organization for Economic Cooperation and Development said Tuesday. In its second annual review of the policies needed to boost long-term growth rates among its 30 members, the OECD said E.U. members have taken some action to boost the productivity of those in work, mainly by eliminating obstacles to competition in some product markets. But it said that reforms designed to raise labor utilization rates "have in most cases neither taken place nor been planned." In its first report last year, the OECD identified high tax wedges - or the difference between what it costs companies to employ a worker and what the worker actually receives - as a disincentive to work in many E.U. countries. It also noted tax disincentives to continuing working in old age, and other obstacles to persuading more people to join the workforce.

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