CCTV.com - CNTV English - CCTV News

Sarkozy announces new economic measures

01-21-2012 08:14 BJT

Watch Video

Play Video

French President Nicolas Sarkozy has announced 430 million euro worth of new measures aimed at kick-starting France's beleaguered economy and reducing unemployment.

At a crisis jobs summit in Paris, the French president also proposed an overhaul of labour rules that he says will boost employment by making French labour cheaper and more flexible. But union leaders say they’re not going to be rushed into reforms.

France's President Nicolas Sarkozy delivers a speech to present his New Year wishes
to the foreign diplomatic corps at the Elysee Palace in Paris January 20, 2012.

Another crisis summit. Not the euro this time, but rather a crisis closer to home. France is on the brink of recession and unemployment is at an almost 12 year high. So at his "crisis social summit" with labour and business leaders Sarkozy proposed reforms to try and get more people back into work. But his key proposal of shifting social charges to value-added taxes was met with strong resistance from union leaders. They say high labour costs are not to blame for French unemployment.

Bernard Thibault, head of General Confederation of Labor Unions said: "I’m not going to waste my time picking up various measures which, from our point of view, won’t have any real impact on the situation of unemployment today."

The so called social VAT is an unpopular proposal from an already unpopular president. The unions say it will just make consumer goods more expensive and they won’t accept it. Polls show that most French people don’t want it either.

Economic analyst Jacques Delpla said: "They’re deliberately opting for an unpopular policy - because VAT increase is not popular - just to show the voters ’I am ready to take unpopular measures just to save the country while the socialist opposition is still in the dreams’."

Reporter said: "Pressure on the president to act decisively intensified last week when Standard & Poor’s cited "labor market rigidities" as a reason for its downgrade of France’s credit rating. Sarkozy will outline his full plans for reform later this month with union leaders already voicing opposition there is little optimism here that the government or the unions will be able to push the job market in the direction of real reform.

France's President Nicolas Sarkozy delivers a speech to present his New Year wishes
to the foreign diplomatic corps at the Elysee Palace in Paris January 20, 2012.

France's President Nicolas Sarkozy delivers a speech to present his New Year wishes
to the foreign diplomatic corps at the Elysee Palace in Paris January 20, 2012.

France's President Nicolas Sarkozy delivers a speech to present his New Year wishes
to the foreign diplomatic corps at the Elysee Palace in Paris January 20, 2012.

France's President Nicolas Sarkozy (L) and Foreign Minister
Alain Juppe arrive at a ceremony to present New Year wishes
to the foreign diplomatic corps at the Elysee Palace in Paris
January 20, 2012.

 

 

Editor:Zhang Rui |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program