Sarkozy Caves Into Striking Taxi Drivers

PARIS — President Sarkozy of France caved in to striking taxi drivers yesterday in an indication that his slump in the polls is forcing him to drop more liberal reforms.

Mr. Sarkozy held out for only 24 hours before abandoning a plan to "open up" the highly protected taxi sector by making it easier for new drivers to acquire licences.

It was a key proposal in a list of 316 suggestions in a report by an economic adviser, Jacques Attali, which was intended to "liberate growth".

Mr. Sarkozy's capitulation to this small sector — there are around 50,000 taxis in France — makes it unlikely that he will reform other closed-shop trades such as hairdressers.

According to Le Figaro, drivers have even been promised a 4% increase in fares and a tax rebate to take account of soaring fuel costs.