France’s socialist government is to spend €2.3 billion next year to combat youth unemployment, despite its need to find more than €30 billion in savings to meet its European commitments to reduce its budget deficit.

The plan to create 100,000 jobs in 2013 was revealed as prime minister Jean-Marc Ayrault made an unprecedented appearance at the annual conference of Medef, France’s employers’ federation, where he sought to reassure business leaders concerned by his government’s policies.

The jobs will be for those aged between 16 and 25 with low qualifications and concentrated in areas of high social deprivation and low employment. – Copyright The Financial Times Limited 2012