French presidential rivals Segolene Royal and Nicolas Sarkozy locked horns today over job laws, with Ms Royal of the Socialist Party accusing her conservative competitor of wanting to dismantle France's labour code.
Ms Royal, who hopes to become France's first woman president this year, vowed to abolish a measure introduced by the conservative government which extends the trial period for employees hired by small firms to two years.
"The model of economic insecurity that the right is proposing is pulling France downwards," Ms Royal told RMC radio.
Mr Sarkozy welcomed what is known as the CNE contract and said it could be extended if he became elected.
France's main business federation, which regards the CNE as a job-creation measure, urged the candidates to present an economic programme that would lift charges and constraints on French business.
"We just need to change some parameters: A bit more freedom, a bit more air and all will improve immediately in France. And everything will improve for the French," said Laurence Parisot head of employers group Medef.
She was speaking at a meeting where Medef put forward a number of proposals including the abolition of the 35-hour week.
Ms Parisot said Medef did not officially support one presidential candidate, but criticised rejection of the CNE.
"I find it strange that one wants to abolish a type of hiring, which has created 45,000 jobs in nine months, which would not exist otherwise," she told Le Figaronewspaper.
France's unemployment rate fell to a five-year low of 8.7 per cent in November, down from over 10 percent in May 2005. The conservative government has attributed the fall to a range of measures including the CNE.
"The CNE is progress. We must not touch it," Mr Sarkozy said at a meeting with business leaders yesterday
Labour laws are a sensitive issue in France, with polls showing unemployment and economic security as voters' top concerns ahead of April's poll.
A new youth labour law, the so-called CPE, triggered large street protests last year, forcing Prime Minister Dominique de Villepin to eventually withdraw it.
Recent polls show Mr Sarkozy - currently the interior minister - on 52 per cent slightly ahead Ms Royal on 48 per cent.