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What looks like victory in the fight against the erosion of job security in France...

PARIS, April 10 — French President Jacques
Chirac announced today that a contested labor law would be taken off the
books, handing a victory to student groups and labor unions who have
demonstrated in the millions in recent weeks to have the measure
scrapped.

The announcement is a blow for Prime Minister Dominique de Villepin, the
chief architect of the law, who until late last week still categorically ruled
out dropping the legislation. It comes only eight days after Mr. Chirac had
formally enacted the legislation, albeit with promises of a speedy revision and
far-reaching modifications.

But over the last week, students and union officials made it clear that
they would not be satisfied with anything less than a withdrawal of article 8 —
the part of the legislation which creates a controversial new contract that
makes it easier for employers to fire young workers.

Union leaders and student representatives were to meet later today to
decide whether Mr. Chirac's promise to "replace" the contract was enough to drop
their demand for formal abrogation.

Early reactions appeared to be favorable.

"The CPE is dead and buried," said Jean-Claude Mailly of the FO union. "The
goal has been achieved."

Francois Chereque, head of the CFDT, France's
largest union, told Agence-France Presse: "If there is a new text in which the
CPE does not appear, that will mean it has been withdrawn, that is what
counts."

Julie Coudry, president of the Student Confederation, one of the
organizations behind the two-month protest movement said on LCI television:
"Today I think we can say that they have finally understood and that we are
satisfied, I think it's the word we can use."