A Chequer-Board of Nights and Days

Jacques Chirac is made to look like a weakling. Dominique de Villepin is undercut. And France's employment situation remains parlous. All in one fell swoop:

French President Jacques Chirac has announced that the new youth employment law that sparked weeks of sometimes violent protests will be scrapped.

He said it would be replaced by other measures to tackle youth unemployment.

Millions of students and union members have taken to the streets over the last month in protest against the law, which made it easier to fire young workers.

Union and student leaders said it was a "great victory" but it is not clear if protests set for Tuesday are still on.

The law introduced a new work contract, known as the First Employment Contract or CPE for under-26s.

It was to allow a two-year trial period, during which employers could end a contract without explanation.

The plan to replace the CPE was announced after a meeting between the president, Prime Minister Dominique de Villepin and other senior ministers on Monday.

The new package of measures includes offering state support for employers hiring young people who face the most difficulties in gaining access to the labour market.

It was being submitted to parliament on Monday and is expected to be voted on in the next few days.

Ah yes. The traditional resort to state support for ending unemployment. I am absolutely certain that no one saw that coming in the end.