Posted on 05/08/2007 5:18:11 PM PDT by bd476
Business eager for Sarkozy revolution
By Henry Samuel in Paris
Last Updated: 12:12am BST 09/05/2007
Anthony Daniels: Sarkozy must ring the changes
Full coverage of the French elections
French business leaders looked forward with relief yesterday to a loosening of the country's rigid labour and enterprise rules following the election of Nicolas Sarkozy, the reformist Right-winger.
But unions warned the new president not to try to ram through economic changes.
While no business group overtly backed Mr Sarkozy against Ségolène Royal, his Socialist rival, during the electoral campaign, it was clear where their preferences lay.
Miss Royal had accused Mr Sarkozy of ignoring workers' rights in favour of the employer's federation, Medef.
Laurence Parisot, the president of the Medef, is a fierce critic of France's 35-hour week, which Mr Sarkozy has promised to revise.
Mrs Parisot sent a telegram after his victory expressing her "wish that the country gets back on the path to strong and durable economic growth in the service of full employment and debt reduction".
For decades France has failed to deal with chronically high unemployment levels and public debt, along with a bloated public service, high taxes and social charges. French work contracts offer high levels of job security but make firing an employee a costly obstacle course, thus dissuading hiring.
Mr Sarkozy, who has promised to push through reforms fast, is taking a break with his family on a 200ft yacht off Malta owned by Vincent Bolloré, a friend and one of France's richest men with media and shipping interests.
He is expected to return to Paris tomorrow to finalise the cabinet of a caretaker government, with the former social affairs minister François Fillon almost certainly his prime minister. Mr Sarkozy is banking on winning a clear majority for his UMP party in parliamentary elections in June, after which he will call a special session of the National Assembly to vote through the first stage of reforms.
His key measure will be to effectively abandon the 35-hour working week by removing social charges and taxes on overtime pay.
Others include massive cuts in inheritance tax, a law guaranteeing minimum service during transport strikes and rules to oblige the unemployed to take offered work.
Business leaders expect him to honour his pledge to improve professional training and to remove an annual tax that companies must pay whether or not they make a profit.
Some trade unionists have threatened strikes and street protests to oppose Mr Sarkozy's policies in a so-called "third round" of the presidential election.
"It's hard to see how unions could oppose the will of the French people," said Claude Guéant, Mr Sarkozy's campaign chief, noting that Sunday's 85 per cent turnout gave clear mandate while unions represented only eight per cent of the workforce.
Mr Guéant said that Mr Sarkozy has no intention of ramming things through.
A further 360 cars were burned on Monday night during street disturbances by youths.
Merci to the French electorate.
Or else what ?
Or else they shut the country down in August like they do every year.
Good question. Maybe they know something about the 300 burning cars?
Yeah but this year the whole lot gets fired. And given the unemployment it wont be hard to find replacements.
The economic changes should act as a positive reinforcement.
Merci beaucoup.
Yeah, double digit unemployment has been the norm for how long now?
A ping to the Holder of the List.
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