The English Channel is only 22 miles wide but it marks one of the world's starkest boundaries between different economic approaches.

On one side, the British tendency is broadly laissez-faire; on the other, a more interventionist approach holds sway.

On the western shore, the Anglo-American model dominates; on the Continent, the hand of the state seems stronger.

Take the approaches to unemployment.

Last week, the British Prime Minster, Tony Blair, lectured the rest of the world's leaders about cutting red tape.

In the tradition of Margaret Thatcher, the British Labour Government broadly believes that "easing the burden on business" accounts for the big growth in jobs in the British economy.

Socialist France

The Socialist government of France, on the other hand, has come up with a scheme for cutting unemployment which basically amounts to job-sharing.

At the beginning of the year, about 12 million French employees started on a 35-hour week, a four hour cut in their basic working week.

It was the enactment of one of the promises in the manifesto which took Lionel Jospin to power in France in 1997.

The rationale is to limit the hours of existing workers so employers take on new people as production expands rather than relying on overtime.

Therefore, so the reasoning goes, the current high rate of unemployment of 11% should fall.

Employers are not happy. If pay fell in proportion to the fall in hours of each of their staff, they reason, then there would be little problem.

But when employees work fewer hours for the same pay, then costs rise and so, the bosses argue, will inflation.

The employers' organisations say that France's competitive position will be hampered - they might not be able to stay long into the night working on this or that contract, but their British competitors will.

The French government recognises that the new law will need time to implement.

It's being phased in across the economy, with tax penalties for firms that don't comply.

Inspectors are already active, calling on firms out of the blue to make sure they're complying.

Initially, the 35-hour rule applies to companies employing more than 20 people.

By next year, the public sector will be brought in and so will smaller companies.

Brussels' dilemma

This choice of how to cut unemployment is being played out in Brussels.

The European Union already has a directive putting a ceiling of 48 hours on the working week. The UK Government has implemented it but with "a light hand" - it's worried that employees might be crushed under the burden.

The real argument's yet to be had: currently, transport workers are exempt from the EU directive.

The Continental inclination is to include them as soon as possible. Britain, however, has qualms. The cross-Channel argument over the best way to give people jobs is yet to be decided in Brussels.