An Uphill Battle

It looks like reforming the French labor laws is going to be difficult:

...Unlike the rioting youths in the banlieues, the objective of the students and public-sector trade unions is to prevent change, and to keep France the way it is. Indeed, according to one astonishing poll, three-quarters of young French people today would like to become civil servants, and mostly because that would mean “a job for life”. Buried inside this chilling lack of ambition are one delusion and one crippling myth.

The delusion is that preserving France as it is, in some sort of formaldehyde solution, means preserving jobs for life. Students, as well as unqualified suburban youngsters, do not today face a choice between the new, less protected work contract and a lifelong perch in the bureaucracy. They, by and large, face a choice between already unprotected short-term work and no work at all. And the reason for this, which is also the reason for France's intractable mass unemployment of nearly 10%, is simple: those permanent life-time jobs are so protected, and hence so difficult to get rid of, that many employers are not creating them any more.

This delusion is accompanied by an equally pernicious myth: that France has more to fear from globalisation, widely held responsible for imposing the sort of insecurity enshrined in the new job contract, than it does to gain. It is true that the forces of global capitalism are not always benign, but nobody has yet found a better way of creating and spreading prosperity. In another startling poll, however, whereas 71% of Americans, 66% of the British and 65% of Germans agreed that the free market was the best system available, the number in France was just 36%. The French seem to be uniquely hostile to the capitalist system that has made them the world's fifth richest country and generated so many first-rate French companies. This hostility appears to go deeper than resistance to painful reform, which is common to Italy and Germany too; or than a desire for a strong welfare state, which Scandinavian countries share; or even than a fondness for protectionism, which America periodically betrays.