French President Nicolas Sarkozy took an important step in his plans to wake up the French economy Tuesday when French labor unions and companies agreed to new flexible labor rules. Sarkozy had threatened far tougher measures if the two sides could not reach an agreement by January 15th. The new rules extend trial periods for newly hired employees and allows workers on permanent contracts a negotiated departure.
See "French unions and business agree new labour rules", Anna Willard, Guardian Unlimited (UK), January 14, 2008