In 2003 and 2004, as oil consumption and prices rose briskly, Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) pumped more oil. OPEC was able to boost production relatively quickly in response to changing market conditions by utilizing productive capacity that had been idle.
The notorious “flexicurity” includes the word “security”. Making the labour market more flexible can unleash potential, but doing so also requires safeguarding workers’ careers and reforming their training. There is also the problem of the mismatch between France’s output and foreign demand, as shown by its external deficit, which is one of the highest in the euro area.