It takes a long time for policies that push up the employment to be efficient. In the meantime, redistributive policies, and therefore an expansionary bias of fiscal policy, must be maintained, but one must then be certain that the employment rate will ev

It takes several years for policies that help push up the employment rate ( cuts in companies ’ social contributions, improvement in the education and vocational training systems , incentive to modernise companies’ capital) to actually lead to a rise in the employment rate. A low employment rate leads to a rise in income inequality and poverty: as long as the employment rate has not risen, redistributive policies and income support must be continued. This means that an expansionary fiscal policy must be maintained once the reforms have been implemented, during the time when their effect on the employment rate is not yet noticeable (which is what Germany, for example, did in the early 2000s, and France is doing currently) . The risk is then obviously that these reforms will fail, that the employment rate does will not pick up, and that it will be impossible to reduce the fiscal deficits by an increase in production resulting from a rise in the employment rate. One must therefore be certain that the reforms will be effective before accompany ing t hem by an expansionary fiscal policy.