Chirac backs down, France steps backwards

My recent stint in Brussels, while a fantastic success insofar as discovering new exotic beers, also provided a unique look at the inner workings of the European Union. It also provided a good look at what isn't working in the EU, and one of the most egregious examples was the labour situation in France. Over the weekend I spent in Paris (March 18-19), I witnessed firsthand the sheer folly in the streets of the Quartier Latin over the issue of the Contrat Première Embauche, or CPE.

I couldn't help but wonder what really lay at the root of all this, but mostly I had come to understand Villepin's efforts as being a necessary first step in the right direction. For France to remain competitive in an ever more competitive global marketplace, labour laws would have to undergo a rather major reform. Villepin's proposed law seemed well intentioned, albeit humble. I think by now it is abundantly clear that the French people deemed it anything but humble.

But, to Villepin's credit, he stood by the proposed law despite the mortal blows he suffered in public opinion. This was, if nothing else, a great example of a leader doing exactly what a leader should do: serve his people's better interests, not merely execute their wishes.

But today, this admirable quality was once again trumped by chronic the short-sightedness of the French people, for whom it has been said that "reform is impossible; revolution is the only means to effect change."

From the BBC News website:

French President Jacques Chirac has announced that the new youth employment law that sparked weeks of sometimes violent protests will be scrapped. He said it would be replaced by other measures to tackle youth unemployment [...] Union and student leaders said it was a "great victory" but it is not clear if protests set for Tuesday are still on [...] 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. It was being submitted to parliament on Monday and is expected to be voted on in the next few days. Speaking in a live television address, Mr de Villepin said the president had accepted his proposed changes. The prime minister said he was convinced that the only way of addressing joblessness in France was a better balance between flexibility for employers and security for employees.

"For some time the action of the government had been guided by one objective, to provide thousands of young people from our society with opportunities for jobs," he said. I wanted to act very quickly because the dramatic situation and the despair of a number of young people warranted it. This was not understood by everyone, I'm sorry to say.

This is a failure of leadership, a failure of communication, and a failure of will. Rarely has the issue been so clear, yet so hopelessly misunderstood. France needs a revolution, or it will collapse, plain and simple. It was offered a reform, at which it indignantly sneered. This is a cautionary tale, warning against the dangers of entrenched narrow-mindedness. France has a long and storied tradition of successful capitalism, but rather than learning from its success, it clings to an outmoded mentality that will ultimately prove ruinous.