[France] Policies in a ‘social’ Europe must cut poverty — Chirac

From Business Day South Africa

Emma Vandore

PARIS — French President Jacques Chirac is advocating an “equitable” distribution of corporate profits, calling for European Union (EU) policies that reduce poverty.

“We must work to build a genuinely social Europe in which the fruits of progress are shared out equitably, for the benefit of all,” Chirac said in a message posted yesterday on the internet and translated for each of the EU’s 25 states.

“Too many of our citizens are the victims of poverty, beset by precariousness.”

Chirac has sparred with UK Prime Minister Tony Blair, who held the EU’s rotating presidency in the second half of last year, by opposing proposals that he says reduce workers’ rights and give business interests too much leeway. In speeches last week, Chirac rebuffed calls to curb welfare spending, saying that a debate on reforming the French “social model” should end.

Chirac suggested the EU renew efforts to modernise its rules after the addition of 10 members in 2004. French voters rejected by referendum last May a proposed EU constitution he had endorsed.

Europe needed to “tackle the question of our institutions”, Chirac said.

Blair wants the EU to adopt economic policies that he credits with cutting British unemployment to 4,9%. The jobless rate is 9,6% in France, according to Eurostat, the EU statistics agency.

Chirac has blocked EU proposals to deregulate hiring in service industries. He says the change will open the gates to lower-paid workers and drive up France’s jobless rate.

The proposed law, to be debated in the EU parliament later this year, will let workers from architects to hairdressers ply their trade across the EU.

France is also pushing for the UK to give up its exemption from the 48-hour weekly limit on working hours. The UK, supported by Germany and several eastern European countries, has offered to enact more safeguards for workers while maintaining a right to “opt out” from any maximum work week.

“May 2006 be a great year of progress for Europe,” Chirac said in his message, an extension of the traditional annual greetings to French citizens where he sets the agenda for the year ahead. “Together, fortified by the diversity of our histories and cultures, we can continue to advance.”