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Chirac scraps youth job law
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Unable to bring needed reform to highly restrictive labor laws, the French government backed off and turned to the standard liberal solution. They are going to try to solve the problem by throwing money at it.
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The new measures include increased financial incentives to employers to hire people under 26 who face the most difficulties in getting access to the labor market, Employment Minister Jean-Louis Borloo said in an interview with Le Monde newspaper.
That would apply to approximately 159,000 young people currently hired under government-subsidized job contracts and the cost to the government would be around 150 million euros ($180 million) in the second half of 2006, Borloo said.
The measures, financed by an increase in tax on tobacco, could be introduced in parliament as early as Tuesday, said a senior UMP deputy but there were doubts over further reform.
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