crazymum when I did my A-levels in the Netherlands, assessment of Dutch literature was in two stages: an oral exam with my own teacher assisted by a colleague, and an essay under exam conditions. This essay was set individually and based on the reading list I'd chosen, which had to include five works of fiction either by one author or on a particular theme (the latter would earn you more marks) plus secondary literature study.
The essay was then marked by my own teacher and sent away to another school where it was marked by a teacher who had never met me, and the mark averaged.
This is clearly labour and resource-intensive but the way the system was set up meant there was thorough benchmarking all the way through.
In MFL exams the literature exams were marked internally and were oral (i.e. a French literature exam would be about the reading list and would be conducted completely in French). We were also required to write a 400 word essay in the language we were studying, which was marked on content, spelling, grammar and punctuation. By the time the central MFL exam rolled round (which would be multiple choice text comprehension) we were all quite looking forward to it because it was a walk in the park compared to what had gone before.
I think internal assessment with benchmarking has a lot going for it in subjects where there isn't necessarily a 'right' answer. I disagreed fiercely with my examiners about Slaughterhouse 5 but was able to argue my case using my understanding of the book and so got the marks. This kind of exam really prepares someone for further education.
In Holland if you take the equivalent of A-levels, you bypass the equivalent of GCSE completely, but friends of mine who were in that stream worked in a similar structure, but with less demanding content.