French Government Fears 'Social Implosions Or Explosions'

The daily drumbeat of layoff and plant-closure announcements in France has been riling up desperate workers who who have little hope of finding a job elsewhere, with unemployment at 10.5%.
But now the government is worried about a “radicalization” of these angry workers. A major quandary: on one hand, the Socialists promised during the election to side with the workers; but on the other hand, they must somehow figure out how to create an environment where the private sector can survive.

And the private sector is gasping for air. The Services Purchasing Managers’ Index fell to 43.6 in January, from 45.2 in December (below 50 = contraction), the fastest rate of contraction since March 2009. Particularly worrisome was the steep decline in employment.

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