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4,000 more taxis for the capital
Unions have agreed a 28% increase the number of taxis in Paris over the next four years.
Unions have agreed to increase the number of taxis in Paris by 4,400 over four years.
Vehicle numbers will rise from the current 15,600 to 20,000 over four years.
A spokesman for the National Taxi Federation said the move was made because of intense pressure to increase the number of taxis in the capital.
Paris has a similar number of taxis to London, but has virtually no minicabs, which more than doubles the number of cars for hire in the British capital.
In January and February this year taxi drivers went on strike and blockaded city centres in protest at reforms proposed by the Attali Commision – a body set up by President Sarkozy to investigate methods to improve the French economy.
Prime Minister François Fillion said the reforms, which included deregulation of the sector to allow minicabs, were merely a suggestion and not government policy.
Commenting on the union deal President Sarkozy said: "Paris is the only town in the world where we have a problem finding a taxi."