French President Jacques Chirac announced last night that a new youth employment law that sparked weeks of protests would be scrapped.
Millions of students and union members have taken to the streets across France in protests against the law, with demonstrations often turning violent.
The Government had backed the law which made it easier to fire young workers.
The law introduced a new work contract for people under 26 allowing a two-year trial period, during which employers could end their employment without explanation.
But Mr Chirac said the First Employment Contract would be replaced by other measures to tackle youth unemployment.
Unions and student groups, which had been demanding the measure's complete withdrawal, are to meet today to decide what further action to take.
Chirac youth law u-turn
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