Financial Times FT.com

Concessions by Chirac fail to appease unions

By Martin Arnold and Peggy Hollinger in Paris and Ralph Atkins,in Frankfurt

Published: April 1 2006 03:00 | Last updated: April 1 2006 03:00

Jacques Chirac, France's president, last night offered new concessions over the contentious labour reforms that have divided the country while trying to safeguard the political future of his prime minister, Dominique de Villepin.

However, he appeared to have done the bare minimum to save Mr de Villepin's face, promising to sign the reforms into law but not to implement them until they had been significantly modified. Nicolas Sarkozy, the interior minister and Mr de Villepin's rival to succeed Mr Chirac, welcomed the the president's announcement as a "wise decision".

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