The best that can be expected for labour market reform in France, after the government's decision announced by prime minister Dominique de Villepin on Monday to replace the deeply unpopular First Job Contract with a softer measure to subsidise employment with tax breaks, is that the issues involved will now be discussed more openly in terms of what works best elsewhere. This was a bad piece of legislation, pushed through with minimal debate or consultation, and widely regarded as unfair.
That it took five general strikes, millions of protesters on the streets and worldwide images of French revolt to make these points tells a story about political and institutional malaise rather than sheer popular bloody-mindedness. France has a weak parliament and trade unions, and an undeveloped mechanism of social partnership compared to many of its neighbouring EU member-states. Its strong state and presidential systems are intended to compensate; but they are ill-fitted to secure the socio-economic reforms required if France is to adapt effectively to global competition - and especially so with a presidential election just over a year away.
This political convulsion has nevertheless opened up the issues concerned to widespread debate. Across the political divide between left and right the need for change is widely acknowledged if persistent average unemployment levels of nearly 10 per cent - and more than double this for first time job seekers - are to be reversed. Relevant experience elsewhere in Europe is receiving more attention in France. The European Union's Lisbon process of economic reform is meant to encourage this, but has had limited success in doing so.
Despite knee-jerk ideological resistance to "Anglo-American neoliberalism" on the French left, Britain's success in reducing unemployment without abandoning social protection under the successive Blair governments is gaining a hearing. Ségolène Royal, currently the most popular presidential candidate in the Socialist Party, has shown an interest in the British model. Part of her appeal has to do with her perceived willingness to think outside the French box on these issues.
Nicolas Sarkozy, who has definitely emerged as the leading Gaullist candidate from this crisis, has a similar appeal. He has emphasised the need to combine labour market flexibility and social protection, with particular reference to Finland, Sweden and Denmark. Others point to German, Austrian and Irish models of social partnership. It would be foolish to expect the issue to be resolved over the next year. But the presidential election should give whoever wins a democratic mandate for change.