The French president has announced that he will sign a controversial youth job law despite weeks of protests, but with the promise that it will be amended right away to weaken two of its most disputed reforms. Jacques Chirac's long-awaited speech on Friday seemed aimed at striking a balance between Dominique de Villepin, the prime minister, who wanted the law applied promptly and in full, and millions of protesters who demand it be scrapped before any compromise could be discussed.Even before he spoke, students gathered in Paris and other main cities to continue their protests against the First Job Contract (CPE), which will let employers fire workers under 26 without cause during their first two years on the job. "It is time to defuse the situation," Chirac said in the televised speech, in which he said he understood the concerns of youths who could not find jobs. Youth unemployment is running at 22%, high above France's 9.6% national average. Chirac said he had heard "the worries that many youths and their parents express. "In our republic, when the national interest is at stake, there should be neither winners nor losers. We should now close ranks," he said.
In a gesture to students Chirac said no CPE contract could be signed until the new changes had been voted. Villepin pushed the law through parliament last month, arguing France must reform its rigid labour code quickly to fight youth unemployment. Students and workers reacted with the biggest protests seen here in years. Chirac's proposals reflected suggestions made by Nicolas Sarkozy, the interior minister and leader of the governing UMP party and the main rival to Villepin in the undeclared race to become the conservative candidate in the 2007 presidential election.