CPE to be scrapped, says Chirac posted by bat020

News just in from the BBC:

France to scrap youth job law

French President Jacques Chirac has announced that the new youth employment law that sparked weeks of protests will be scrapped. He said the First Employment Contract - or CPE - would be replaced by other measures to tackle youth unemployment.

Obviously any full assessment of this depends on what the "other measures" entail, but withdrawing the CPE was a key demand of the movement, and forcing the government to do this is at the very least a huge symbolic victory. The odds on Villepin heading for the tumbril are certainly gonna shorten.

Update: There's a better and more detailed report in the Financial Times which includes some speculation over these "other measures":

However, the advice that was likely to have been given to the president on Monday is likely to recommend that the controversial contract be replaced by another contract aimed more specifically at young people without qualifications or training, according to people with knowledge of the preparations for the meeting.

The unions are meeting today and will be responding this afternoon.