Last chance to save France: loosen 35-hour week and cut public holidays, say bosses

French unemployment stands at record highs and the economy has been stuck on zero growth for the past two quarters.

"Given the economic and social condition of our country, given the period of economic crisis we are suffering, given the dangers we have to overcome, the time for hesitation, procrastination and half-measures is over," said Gattaz.

France's social model is outdated, he charged, adding that the country was now competing with "150 countries" rather than five.

Business leaders in the country were already familiar with a "fear of change" in France, he said.

Unions hit back immediately, with the leader of the FO union, Jean-Claude Mailly, describing the proposals as "unacceptable."

In a bid to pep up the eurozone's second-largest economy, the deeply unpopular President Francois Hollande has proposed a "Responsibility Pact" between government and business.

The proposal, also unpopular with the political left, would see business winning €40bn (£32bn) in tax breaks in return for a pledge to create jobs over three years.

With France's public deficit ballooning, Hollande plans to finance this with €50bn in public spending cuts.

Report from AFP

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