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        WORLD / Europe

        Chirac replacing law, a defeat for PM
        (AP)
        Updated: 2006-04-10 21:39

        President Jacques Chirac on Monday threw out part of a youth labor law that triggered massive protests and strikes, bowing to intense pressure from students and unions and dealing a blow to his loyal premier in a bid to end the crisis.


        French Prime Minister Dominique de Villepin, waits for the arrival of his Portuguese counterpart Jose Socrates, in Paris, Monday April 10, 2006. [AP]

        While some unions celebrated what they called "a great victory," students who had planned more demonstrations appeared more cautious, saying their movement would continue for now.

        Prime Minister Dominique de Villepin, who devised the law, had faced down protesters for weeks, insisting that its most divisive provision ¡ª a so-called "first job contract" ¡ª was necessary to reduce high unemployment rates among French youths by making it easier for companies to hire and fire young workers.

        But acting on advice from Villepin, his longtime protege, Chirac "decided to replace" the provision with one aimed at "youths in difficulty," the president's office said.

        Top lawmakers from Chirac's ruling conservative party presented a new plan to parliament Monday. The proposal emerged after talks the legislators held last week with unions and student groups to find ways of ending the crisis.

        A somber Villepin, in a television appearance, explained his original legislation was designed to curb "despair of many youths" and strike a "better balance ... between more flexibility for the employer and more security for workers."

        "This was not understood by everyone, I'm sorry to say," Villepin said.
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