In front of youth unemployement which is now endemic in France, the Prime minister Dominique de Villepin unveiled on the 16th of january, 2006 the creation of the CPE (Contrat Première Embauche or first employement contract), a new work contract for under-26's. The main characteristic of this contract was to make layoff easier during the 2 first year of the contract.

Knowing it was a highly sensitive matter for youth, he used a special proceeding which allowed the adoption of the law without a vote of the parliament during school holidays. But in February and March, students, high school pupils and even schoolboys went on strike, blocked universities and schools and organized massive demonstrations all over France to demand the withdrawal of the CPE.

Weakened by criticism coming from all sides and worn-out by nearly three months of crisis during which pressure from the “anti-CPE” kept growing stronger, the Prime minister announced the withdrawal of CPE on the 10th of April. Once again, government was defeated by demonstrators and France keeps on displaying the oddness of its functioning method in comparison with other western democracies.