24 June 2005, 11:48  Villepin says surging oil prices a "heavy constraint" on economy

Prime Minister Dominique de Villepin said rising oil prices, which yesterday reached 60 usd a barrel, are a "heavy constraint" on the French economy, and reiterated his promise to move quickly in order to spur growth and cut unemployment. An oil price of 60 usd per barrel "is a heavy constraint that weighs on us, on our economy, which is not to say that we don't have means at our disposal to act," Villepin said on France Inter radio. "We must not wait with our arms folded for growth to return," he said, adding that the government has decided to focus on "an urgent plan for employment." "Employment means more confidence, and in the end, more growth," he said. But although Villepin has proposed a new work contract that would extend an employee's trial period to 2 years when hired by small companies, which has sparked sharp criticism from labour unions, he said the government will not dismantle France's work laws. "I have no intention to bring down our working laws," Villepin said.

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