At the end of March I wrote about the minor attempt to liberalize the French job market, "Does anyone really doubt that President Chirac and Prime Minister de Villepin will eventually cave in and reject the proposed reforms? The Franch surrender, that's what they do." And of course I was right, because in response to the riots France has scrapped the youth job law intended to increase employment rates for France's youth (the "CPE") and replaced it with yet another doomed socialistic scheme.
French President Jacques Chirac has announced that the new youth employment law that sparked weeks of sometimes violent protests will be scrapped. ...
The plan to replace the CPE was announced after a meeting between the president, Prime Minister Dominique de Villepin and other senior ministers on Monday.
The new package of measures includes offering state support for employers hiring young people who face the most difficulties in gaining access to the labour market.
So instead of inching towards a free economy, the French government will now subsidize jobs for young workers (who can never be fired). Sounds like a great plan!