Lessons learned

10 Apr 2006 By Edward Hadas

It s all over for France’s controversial labour reforms, at least until the 2007 election. The president has completely rolled over. The entire political establishment is discredited. The risk is it now resorts to crude populism yet more protectionism, for example.

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The French government has withdrawn the CPE, a law which created a twoyear contract for young workers. The withdrawal follows extensive street protests. The government will instead add E150200m to its subsidies for employers of unskilled young workers.

54% of the French population identify the fight against unemployment has the highest priority for the government, according to a poll taken on March 23 by Sofres. The government's policies were considered ineffective by 87% of the population. The poll showed that 20% of the population had confidence in President Jacques Chirac, down from 26% in December 2005. Confidence in Dominique de Villepin, the prime minister, has fallen from 45% to 29%.

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