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by Agnes a Paris
[editor's note, by AgnesaParis]
Noteworthy article in today's issue of the Financial Times
providing a pretty fair assessment of the challenges the government is facing.
Link to the article: De Villepin caught between protesters and opening markets Yet another diary as part of my coverage of the reform the French rightwing government is implementing. It is a bold and sweeping reform indeed as it aims at, not less, dismantling the French labour code. If passed, this reform will leave Reagan and Thatcher far behind when it comes to ruthless liberalisation of the labour market. I am convinced that this reform project is really harmful in the short and long term perspective. In the short term, it is hurting the country's moral very badly (for those aware of what the government has in store).
For record purposes, the idea is to amend the whole corpus of employment contracts currently in force to come up with one single contract, providing for a two year probation period.
This probation period would apply to all new contracts entered into once the reform is enacted. A probation period is characterized by the fact that both parties can put an end to the employment contract without justification of the reasons why they do so. The UMP government sees it as the triumph of flexibility that will cure the ills of our fossilized labour market and boost the country's competitiveness. This reform is based on the assumption that the current set of labour regulations is a deterrent for employers to hire people, hence the so much bemoaned French skyrocketing unemployment rate that the government targets to curb.
As luck would have it, the scope of the reform is starting worrying the business community.
Link to previous diaries |
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How the French government aims at outdoing Reagan and Thatcher | 31 comments (31 topical, 0 editorial, 0 hidden)
How the French government aims at outdoing Reagan and Thatcher | 31 comments (31 topical, 0 editorial, 0 hidden)
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