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French employer groups called on President Francois Hollande to speed up reforms and cut public spending to revive the ailing economy in a joint statement issued on Sunday ahead of an annual conference of government officials, employers and labour unions.
The July 7-8 conference will focus on reform proposals, including Hollande's "responsibility pact" which offers companies 41 billion euros ($56 billion) in payroll tax cuts over three years in exchange for promises of more hiring.
Three employer groups - the largest group, Medef, small and medium-size companies group CGPME and farmers union FNSEA - have threatened to boycott the event over some of the proposals, such as using a tax on companies to compensate people with arduous jobs and a minimum 24 hours per week for part-time contracts aimed at securing jobs.
The three joined five other groups to publish a letter in weekly Journal du Dimanche in favour of general reform, without making concessions on specific demands.
"Due to the urgency of the situation, we must act quickly, with determination and consistency," they said.
The groups called for a clear and quick implementation of the responsibility pact with texts setting clear targets over the next three years to cut labour costs and taxes.
They also asked a halt to all measures that would complicate their regulatory constraints and for reforms enabling rapid and sustained cuts in public spending, noting that this would require looking into structural bottlenecks and touching some subjects that have previously been considered off-limits.

Copyright Reuters, 2014

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