Hollande’s €2bn plan to tackle unemployment crisis
French president, Francois Hollande, has announced that his country is in “a state of economic emergency”, as the battle against sky high unemployment continues.
Intended to redefine the French economic model, Hollande set out his strategies that involve the government spending more than €2bn (£1.5bn). His plan include deregulation aimed at encouraging businesses to take on new staff, and training programmes for half a million workers.
These schemes are designed to reduce the country’s 10.6% unemployment rate. The level of people out of work is at an 18-year high, and is more than double the UK amount.
The president had earlier acknowledged unemployment as his "first priority”, referring to the 3.6m people in France currently looking for work. On Monday he said that “faced with an uncertain economy and persistently high unemployment, there is also a need to proclaim a state of economic and social emergency”.
Mr Hollande admitted, “France needs to improve training and education and the level of skills of its workforce”. The poor French economy has been reaching GDP growth barely in excess of 1% a year, failing to reach what is required to stop joblessness.
In an annual speech to business leaders, Mr Hollande said, “These €2bn will not be financed through extra taxes of any kind. They will be financed by savings". The plans will be executed before the next presidential elections, due to take place in April 2017.
Under the jobs plan, companies with under 250 workers will receive a €2,000 subsidy for hiring young and unemployed workers for periods of more than six months. A further €1bn will be allocated towards improving the skills of the workforce, and the compensation workers can claim for dismissal will be capped.
The country’s level of joblessness has increased by more than 600,000 people since Mr Hollande came to power in 2012. He has denied claims that he is trying to “artificially” reduce unemployment ahead of the vote.
French president, Francois Hollande, has announced that his country is in “a state of economic emergency”, as the battle against sky high unemployment continues.
Intended to redefine the French economic model, Hollande set out his strategies that involve the government spending more than €2bn (£1.5bn). His plan include deregulation aimed at encouraging businesses to take on new staff, and training programmes for half a million workers.
These schemes are designed to reduce the country’s 10.6% unemployment rate. The level of people out of work is at an 18-year high, and is more than double the UK amount.
The president had earlier acknowledged unemployment as his "first priority”, referring to the 3.6m people in France currently looking for work. On Monday he said that “faced with an uncertain economy and persistently high unemployment, there is also a need to proclaim a state of economic and social emergency”.
Mr Hollande admitted, “France needs to improve training and education and the level of skills of its workforce”. The poor French economy has been reaching GDP growth barely in excess of 1% a year, failing to reach what is required to stop joblessness.
In an annual speech to business leaders, Mr Hollande said, “These €2bn will not be financed through extra taxes of any kind. They will be financed by savings". The plans will be executed before the next presidential elections, due to take place in April 2017.
Under the jobs plan, companies with under 250 workers will receive a €2,000 subsidy for hiring young and unemployed workers for periods of more than six months. A further €1bn will be allocated towards improving the skills of the workforce, and the compensation workers can claim for dismissal will be capped.
The country’s level of joblessness has increased by more than 600,000 people since Mr Hollande came to power in 2012. He has denied claims that he is trying to “artificially” reduce unemployment ahead of the vote.