France's Hollande unveils measures to boost employment

France's president Francois Hollande has declared "a state of economic and social emergency" as he announced a new job creation scheme.

The €2bn scheme, which aims to tackle the country’s 10%-plus unemployment levels, includes €1bn for new job training schemes and €2,000 subsidies for companies with fewer than 250 workers when they take on a low-paid worker.

In an annual speech to business leaders, Hollande said France needed to "redefine" its economic model" and to "increase the pace of reforms" but that his plan would not call for increased taxation nor revise the 35-hour working week.

“These two billion euros will be financed without any new taxes of any kind, in other words, they will be financed by savings.”

With 15 months to go before France's presidential election, Hollande added: “We have to act so that growth becomes more robust and job creation more abundant. Our country has been facing structural unemployment for too long and it needs to reform.”

Two years ago, Hollande announced measures including €40bn in corporate tax breaks, measures to introduce more flexibility into temporary job contracts and a plan to curb public spending.