France takes over the EU Presidency on July 1st, when President Nicolas Sarkozy will be in charge of European policies for the next six months. But he still has plenty to deal with in his own country. The small town of Domfront in Normandy mirrors the French economy as a whole. People here face increased living costs, which have risen by 3.4%, more than the EU average of 3.3% and of 2.6% in Germany. With the introduction of the 35 hour week, the manager of the local biscuit factory needed more staff, thus increasing costs. Our reporter Grit Hoffman went to Domfront to see for herself.