French reform bill a major test for a weakened Hollande

French President Francois Hollande delivers a speech during the Social Good Week event at the Elysee Palace in Paris, December 4, 2014. REUTERS/Philippe Wojazer

PARIS (Reuters) - France's Socialist government will propose on Wednesday a reform bill which is crucial for avoiding EU sanctions but risks being watered down by lawmakers angry with President Francois Hollande's deregulation drive.

The bill aims to let shops open more often on Sundays and resolve disputes over firings more rapidly. It also includes plans to deregulate the legal trade and cut red tape for construction.