Macron defends raft of 'ambitious' reforms

PARIS - French President Emmanuel Macron's government unveiled a major overhaul of the labour code on Thursday, a signature reform that will test his ability to force through changes and face down protests.

The 39-year-old centrist sees overhauling France's highly protective, rigid labor regulations as key to creating jobs.

The measures are aimed in particular at helping small and medium-sized business by curbing the power of unions, limiting unfair dismissal awards and allowing bosses to negotiate more working terms and conditions directly with their employees.

Prime Minister Edouard Philippe, unveiling the changes at a news conference, called them "ambitious, balanced and fair" and said they would help France "make up for lost years" of high unemployment.

"There are differences. We accept them," Philippe said, referring to opposition and criticism from trade unions.

The moderate CFDT trade union said it was "disappointed" by the proposed changes overall, while the hard-left Force Ouvriere union also said it disagreed with many of the measures.

But crucially from Macron's perspective, neither of them said they would recommend their members join planned street protests next month by the CGT, France's biggest union.

The reform is a pivotal part of Macron's domestic agenda.

He campaigned on a promise to encourage entrepreneurship in France, where the unemployment rate of 9.5 percent is almost double that of its large European rivals.

In an interview published on the eve of the announcement, Macron said the overhaul had to be "ambitious and efficient enough" to spur job creation.

"We are the only major economy in the European Union that has not defeated mass unemployment for more than three decades," he told Le Point magazine.

He warned last week that the French "hated reforms" and tried to avoid them as long as possible - but his European partners, particularly in Germany, are watching closely to see if he can succeed in implementing them.

The announcement comes at a time when Macron's approval ratings are falling sharply, signaling the end of the honeymoon he enjoyed with the public following his election.

Recent polls showed that only around 40 percent of French voters are satisfied with his performance in office, with the fall attributed by analysts to a mix of communication problems and political missteps.

Agence France-presse