News Summary: IMF calls for French economy reforms

CHANGE NEEDED: France needs to step up reforms of its economy and labor market to avoid falling further behind its European neighbors, the International Monetary Fund warned.

BACK STORY: The report noted the gap between France's competitiveness and that of its neighbors is growing. Spain and Italy have made significant reforms in recent months, especially to their labor markets. The IMF said France needs to make it easier and cheaper for companies to fire workers.

ECONOMY STRUGGLING: The IMF expects the French economy to shrink 0.2 percent this year and grow 0.8 percent in 2014. It had previously predicted growth of 0.9 percent next year.