Economic policy: Too many objectives should not be pursued at the same time
We will take the examples of France and Italy. These two countries have two main problems: A conflict between high labour costs and a low level of product sophistication; A low skill level and a low emplo yment rate. Until these two main problems have been solved (modernisation of capital, skills of business leaders, a reduction in taxes on labour, innovation regarding the conflict between costs and the level of product sophistication; employee skills and hence training, education, labour costs with regard to the low level of the employment rate) it is illusory to pursue other objectives (an increase in purchasing power, a reduction in the fiscal deficit), without surplus disposable income.