François Hollande has about 100 days to deliver on reforms that have eluded past French leaders after the European Commission set a deadline for clearing barriers to growth in the euro zone's second largest economy, reports Reuters.
If changes are not made by March 2015, economy commissioner Pierre Moscovici -- French finance minister until eight months ago -- could impose penalties including a fine of up to 4.2 billion euros ($5.2 billion). That would be politically humiliating for France, a founding and core member of the EU.
The Commission says it will judge France on the basis of its 2015 budget due to be finalised later this month, and whether it manages to launch a new wave of reforms promised in a Nov. 21 letter to Commission president Jean-Claude Juncker.
"Things have to move forward between now and March. If not, the Commission will not hesitate to assume its responsibilities," Moscovici warned his ex-boss last week.
The centerpiece of the French effort is the "Law on Growth and Activity" to be unveiled on Dec. 10 by economy minister Emmanuel Macron, who has also charged unions and employers with going further than the modest revamp of labor rules they agreed in January 2013.
French unemployment remains stubbornly above 10 percent and hit a record 3.46 million in October after the economy stagnated in the first half.