The Bank of France has blamed the trade deficit and shrinking productivity gains on a 1998 law reducing the legal workweek to 35 hours from 39. The law also led to the creation of six minimum pay rates and on July 1st the government raised the minimum wage 5.3%. French manufacturers have already been hurt by a 12 percent gain for the euro against the dollar in the past year
See "French trade edge slips", International Herald Tribune, August 25, 2003