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Full Article Download our Wider Image iPad app Pictures of the month: October Follow Reuters Facebook Twitter RSS YouTube Read Housing crisis looms as storm victims battle cold | 3:18pm EST Obama, Romney in even race two days before election: Reuters/Ipsos poll | 2:52pm EST New York nanny arrested in slayings of two young children 03 Nov 2012 Facebook's Sandberg sells $7.4 million in stock 02 Nov 2012 Mail-in ballots: the hanging chads of 2012? 7:11am EST Discussed 192 Jobless rate seen rising, offering Obama no relief 167 Fuel scarce, East Coast struggles to recover 97 Race is tied, but most think Obama will win: Reuters/Ipsos poll Sponsored Links France could cut labour charges for some sectors: minister Tweet Share this Email Print Analysis & Opinion Credit Suisse keeps on finding more costs to cut Related Topics Investing Simplified » World » PARIS | Sun Nov 4, 2012 3:07pm EST PARIS (Reuters) - The French government could propose cutting labour charges for selected sectors and companies as part of its plan to kickstart competitiveness, the junior minister for small and medium-sized business said on Sunday. In an interview with TV channel France 5, Fleur Pellerin said small-to-medium enterprises will play an important role in a government plan due to be outlined on Tuesday, the day after the publication of a government-commissioned report by industrialist Louis Gallois on how to improve competitiveness. Asked about demands to slash France's high labour charges, which business leaders say put them at a disadvantage against foreign rivals, Pellerin said: "There are sectors exposed to international competition where this makes sense and other sectors where it makes less sense." Pellerin said there is an issue of labour charges for certain sectors as well as certain types of companies and that it would be addressed "with courage and lucidity." Gallois, the former head of aerospace group EADS, has said publicly that to increase competitiveness, France needs "shock therapy" through a rapid payroll tax cut worth 30 billion to 50 billion euros ($38.5 billion-$64.2 billion) financed by increasing other taxes. However, the Socialist government has rebuffed calls from business leaders to slash labour charges to boost competitiveness and raise VAT, saying that would hit consumers. The country has some of the highest labour charges in the world in order to finance its welfare state. Business leaders blame those hefty costs for putting them at a disadvantage with foreign competitors and driving France to a record trade deficit last year of more than 70 billion euros. ($1 = 0.7785 euros) (Reporting by Jean-Baptiste Vey; Writing by Elena Berton; Editing by Marguerita Choy) Investing Simplified World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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