Nicolas Sarkozy on Wednesday unveiled nearly 100 measures to streamline France’s cumbersome public administration, cut costs and provide more consumer-friendly services to business and the public.
The measures, the interim findings of a comprehensive audit of ministerial functions and resources, could amount to the most ambitious reform in 50 years of one of the costliest government bureaucracies in Europe. The overhaul aims to slim down central government, eliminating overlaps between agencies at local level and reducing the cost of red tape on business by 25 per cent, with a notional saving to companies of €15bn ($22bn, £11bn) a year.
Reform is essential if France is to eliminate its public deficit, reduce debt and raise the growth rate of the economy, the president told a meeting of ministers and officials at the Elysée palace. “This constitutes a revolution in our public administration,” he said.
The proposals include halving the number of government ministries and departments. The armed services, which are separately housed in central Paris, will be regrouped in a single purpose-built ministry on the edge of the city, dubbed the French Pentagon. The proposals are likely to anger public sector unions already threatening to continue strike action over pay.
Mr Sarkozy also proposed changes to the way the government operated in the provinces and an overhaul of the role of departmental prefects, who have acted as the eyes and ears of Paris since Napoleonic times. Offshoots of central government operating across the country will be rationalised and grouped under more powerful regional prefects.
The proposals are also aimed at making government services more accessible to users: identity cards and passports will be issued by town halls; more services will be provided online or through call centres; and divorce by mutual consent could be allowed without going before a judge.
The government is also planning to tighten up its financial management, shifting to three-year spending settlements and time-limiting tax breaks.
With its seven layers of government, from the village council to the European Union, France has probably the heaviest and most expensive administrative structure in Europe. Taxation as a proportion of gross domestic product is 44 per cent, the highest in the EU. There are 5.1m public officials, covering teachers, hospital staff, local government employees and civil servants working for central government. One reason the state is bloated is that when power was devolved to regional and local councils, no corresponding reduction was made in central government.
Mr Sarkozy said France spent €1bn a year on its public administration. That would fall to €850m if it spent proportionately the same amount as Germany.
However, it is unclear how far these reforms will cut public spending. The government has pledged to reduce the number of public officials by 100,000 over five years, but half the savings will be ploughed back into better pay and benefits.
Mr Sarkozy has dismissed any suggestion of austerity measures for the public sector. The many attempts by previous governments to cut bureaucracy have often failed to bear fruit because local politicians fight to resist closures that affect their constituents.
