French President Jacques Chirac announced tonight he would sign a controversial youth job law despite weeks of protests, but promised it would be amended right away to weaken two of its most disputed reforms.
His long-awaited speech seemed aimed at striking a balance between Prime Minister Dominique de Villepin, 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 per cent, high above France's 9.6 per cent national average.
Mr de 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.
Mr Chirac's proposals reflected suggestions made by Interior Minister Nicolas Sarkozy, leader of the governing UMP party and the main rival to Mr de Villepin in the undeclared race to become the conservative candidate in the 2007 presidential election.
Opposition Socialist Party leader Francois Hollande said Mr Chirac had failed to calm the atmosphere and there was now "much to fear... I think he made things more complicated where he should have made them more simple." "There will be more demonstrations," he said.
Students staged an initial protest during the day at the Bastille monument, a favourite starting point for French protests in Paris, and called for a further demonstration late on Friday at the same place.
Dominique Barbet, senior economist, at BNP Paribas said: "The law has been largely emptied of content but the trade unions, students, and opposition just refuse the law altogether so the protests are likely to continue."