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French PM in modernisation pledge French PM in modernisation pledge
(about 3 hours later)
French Prime Minister Francois Fillon has announced plans to modernise France's institutions of government.French Prime Minister Francois Fillon has announced plans to modernise France's institutions of government.
In his first major policy address since taking office in May, Mr Fillon proposed strengthening parliament and reforming the voting system.In his first major policy address since taking office in May, Mr Fillon proposed strengthening parliament and reforming the voting system.
Mr Fillon, 53, also pledged to slash unemployment by the end of the government's five-year term in 2012.Mr Fillon, 53, also pledged to slash unemployment by the end of the government's five-year term in 2012.
He told parliament the new EU treaty agreed in June would go before MPs for consideration in 2008.He told parliament the new EU treaty agreed in June would go before MPs for consideration in 2008.
In a referendum in 2005, French voters, along with the Dutch, rejected the draft EU constitution, which the treaty aims to replace.In a referendum in 2005, French voters, along with the Dutch, rejected the draft EU constitution, which the treaty aims to replace.
"France needs Europe to protect its interests and expand and Europe needed France to restart itself," Mr Fillon told MPs."France needs Europe to protect its interests and expand and Europe needed France to restart itself," Mr Fillon told MPs.
Large swathes of the government's reform plans had already been revealed almost two weeks ago by President Nicolas Sarkozy, speaking to MPs from his UMP party.
'New contract'
Mr Fillon set a goal cutting unemployment to 5% down from 8.1% currently - one of the highest jobless rates in Europe - by the end of the government's five-year term.
We must renew our political democracy, modernise our social democracy, and support our intellectual and scientific excellence Francois FillonFrench prime minister
He called for a new "political, social and cultural contract" during his address to France's newly-elected parliament, which is dominated by the UMP.
"We must renew our political democracy, modernise our social democracy, and support our intellectual and scientific excellence."
As part of plans to reform institutions, Mr Fillon said his government would consider introducing some measure of proportional representation for parliamentary elections.
More parliamentary commissions would be created and opposition members would be appointed to key committees, he added.
A commission of "leading figures" with "unquestionable" credentials would be asked to come up with proposals to modernise the country's institutions, he said.
Business boosts
Mr Fillon also gave France's employers and unions until the end of the year to put forward proposals to create a more flexible labour market.
He vowed to encourage the creation of small businesses by lowering taxes and reducing bureaucracy.
Other measures include:
  • Cut debt to under 60% of GDP and re-establish budgetary balance by 2012
  • Zero growth in state spending from 2008
  • Half of state workers who retire will not be replaced
  • Modernise French universities and build 500,000 new homes a year.