The slow-motion collapse of the French government's attempt to free up youth employment law is a serious setback to labour market liberalisation in Europe. But if this marks the start of a proper debate about the need for reform in France it will still be possible to salvage something valuable from this debacle.

What has failed so spectacularly over the past few weeks is not liberalisation itself but a political methodology of reform. Dominique de Villepin, the French prime minister, rammed reform through parliament as if he were leading a charge of the Imperial Guard. Jacques Chirac, the president, maintained an Olympian detachment from controversy far too long, so by the time he intervened it was already too late.