The government would find implementing such tax increases difficult next year because they would crimp consumer spending further.
French Finance Minister Pierre Moscovici said last week that the government was likely to focus on measures to promote innovation.
“I think that first of all we’ll act on things other than labor costs,” Moscovici said.
Targeting innovation is unlikely to produce such quick results, although it is likely to cost less in the short term.
However, promoting research, improving worker training, simplifying administration and other similar measures could produce significant long-term benefits.