EU Economics

Hollande declares France state economic emergency throws £1.5 BILLION reducing unemployment.

  • President Francois Hollande claims his country is in ‘economic emergency’
  • He has promised £1.5billion in spending to try and reduce unemployment
  • But he has also pledged the money will come from savings, ‘not tax rises’

Mr Hollande today pledged huge spending on a package of measures to fight the stubbornly high unemployment that has dogged his four years in power.

Labelling the country in ‘a state of economic emergency’ and requiring urgent new measures, the socialist also promised the spending would not come from tax rises.

Mr Hollande today pledged huge spending on a package of measures to fight stubbornly high unemployment

In a speech to business leaders, he said: ‘These two billion euros will not be financed through extra taxes of any kind. They will be financed by savings.’

One billion euros will be spent on training schemes for unemployed people.

Joblessness, which stands at around 10 percent or 3.57 million people in the eurozone’s second-largest economy, was the ‘only issue which ranks above security for the French people’, he claimed.

Mr Hollande said France needed to ‘increase the pace of reforms’ and innovation was ‘key’ to getting people back to work.

‘France must also increase training, education and the level of qualifications of its workers,’ he said.

After several years of sluggish growth, the French economy took another blow with the jihadist attacks in November that killed 130 people, which slowed activity in the fourth quarter.

Under the new measures to stimulate recruitment, companies employing fewer than 250 people will receive a 2,000-euro bonus for each new employee with a contract of more than six months, under certain conditions.

Hollande dismissed suggestions that he was trying to ‘artificially’ reduce unemployment as he prepares for a bid to secure re-election in the 2017 presidential election.

Despite this, the new measures were greeted with scorn by the opposition.

‘What planet are Francois Hollande and his government living on if they think it is enough to pay a company that takes someone on a cheque of 1,000 or 2,000 euros?’ said Guillaume Larrive, of the right-wing Republicans led by former president Nicolas Sarkozy.

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