The macroeconomic policy framework is sound, but financial supervision remains perfectible.

Implement the banking law which incorporates Basel III capital adequacy requirements and strengthens supervision.

The fiscal stance is broadly appropriate. However, public debt has increased from a low level and fiscal revenues are dependent on copper prices.

Increase further public revenues from environmental, property and personal income taxes to increase equity and stimulate growth over time.

Secure the mandate, resources and independence of the Fiscal Advisory Council in Law and strengthen its role in medium-term budgetary planning.

Weak and slowing trend productivity growth.

Strengthen existing national e-procedures for firm registration and authorisation, and focus on ex-post controls for businesses that have low associated sanitary and environmental risks.

Involve stakeholders further in the design of regulations through early consultation procedures. Conduct systematic ex-ante and ex-post evaluations of regulations, notably through the existing productivity assessments.

Improve further technical assistance and mentoring to small firms, building on the new local business centres.

Social and education spending have increased but inequality remains high.

Further increase social spending to reduce inequalities.

The private pension system does not do enough to reduce inequalities, while population aging will put pressure on public spending.

Raise contributions to increase savings for retirement.

Continue to increase the solidarity pillar funded with general taxation.

Progressively increase and align the retirement age of women and men.

The competition framework has significantly improved. However, the survival of less productive firms points to weak competition.

Systematically review competitive pressures in key sectors, such as telecommunications and maritime services, by conducting market studies and applying the guidelines of the OECD’s Competition Assessment Toolkit.

Ensure that public entities have to comply with the Competition Agency recommendations or to publicly explain their decisions.

Streamline permits and their process to encourage investment and simplify regulations that depend on firm size, such as childcare provision, to limit their impact on firm growth.

Expenditure on R&D is low as a share of GDP, especially in the business sector.

Strengthen policy evaluation by beefing-up data collection, systematic reviews and independent studies. Expand R&D support programmes that are proven to work, and close down or adjust inefficient ones.

Export performance has weakened. Intra-regional trade is low compared to other regions of the world. Non-tariff barriers are pervasive.

Continue efforts to fully integrate the single window mechanism with the domestic logistic infrastructure and with regional partners.

Reduce further non-tariff barriers on intra-regional trade by simplifying regulations of preferential trade agreements.

Port connections to railways are weak. Lagging intermodal transport infrastructure and metropolitan coordination increase congestion and environmental damages.

Develop national, regional and metropolitan long-term infrastructure strategies. Integrate the regulation of public and private ports.

Fully integrate the environmental and health damages of transport modes in taxes and road pricing to ensure fair competition.

Reduce barriers to entry in maritime services and railways.

Cash transfers are small.

Strengthen cash benefits, notably employment subsidies and unemployment- and health-insurance support.

Women and youth employment rates are low relative to the OECD.

Ongoing efforts will increase equity in access and quality at all levels of education. A high share of adults lacks basic skills. Higher education does not adequately prepare students for the labour market.

Further increase affordable, good-quality child care for the poorest children and in rural areas, and expand opening hours for childcare institutions.

Continue ongoing efforts to improve quality at all levels of education.

Develop apprenticeships, integrating work and school-based learning, across all levels of education.

A high share of the population holds temporary or informal jobs.

Reduce dismissal costs for permanent contracts and increase coverage of unemployment benefits by reducing the minimum contribution periods.

The share of low-skilled workers is high and they have restricted access to training programmes.

Better target firm-provided training programmes to the most vulnerable workers. Continuously evaluate active labour market policies, public and firm-provided training, to focus funding on those that are performing well.