Embattled President Jacques Chirac sought to woo back sceptical voters yesterday by vowing to defend French industry in light of a rumoured takeover bid for food giant Danone.
Mr Chirac, whose popularity has slumped close to all-time lows, said he would be "vigilant and mobilised" should US drinks firm PepsiCo mount a takeover bid on Danone.
"France's priority is to defend its industrial competitiveness and the strength of its businesses," Mr Chirac said during a two-day visit to Madagascar, after three top ministers all vowed to protect France's national interests.
Analysts say Mr Chirac's remarks reflect his need to convince voters he will do all he can to protect French jobs - a key issue after many voters said they rejected the European Union's constitution in May to voice their anger over high unemployment.
"We have seen that the French largely voted no because of fears of globalisation and a rejection of economic liberalism. The government's policies have to react to this," said commentator Christophe Barbier.
"Chirac's comments follow the rhetoric he has applied after the referendum to assure voters about globalisation," said Mr Barbier, deputy editor of L'Express magazine.
PepsiCo's possible attack on national flagship Danone comes after Mr Chirac suffered multiple setbacks in the past few weeks.
After voters rejected the EU referendum Mr Chirac called, London beat Paris in its bid to host the 2012 Olympic Games - a project Mr Chirac had personally lobbied for.
With his economic record also in question - unemployment is at a five-year high - Mr Chirac has also faced constant snipes from his main rival, Interior Minister Nicolas Sarkozy, who hopes to become president in 2007.
"Given his current situation, Chirac needs to show that he is there, and that he is concerned about jobs and France's national interest," political analyst Paul Bacot said.
But in his efforts to protect French firms, Mr Chirac risks upsetting his international partners. Paris has irked other EU states before by trumpeting "national champions" of industry.
In his former post as finance minister, the outspoken Mr Sarkozy drew a rebuke from his German counterpart, Wolfgang Clement, for touting "protectionist" industrial policies.
The two clashed last year when France backed a takeover of Franco-German pharmaceuticals group Aventis by smaller French rival Sanofi and pushed through a rescue of engineering firm Alstom that prevented Germany's Siemens from acquiring a stake.
"It does damage France's reputation," a London-based analyst said of the government's strong rhetoric on Danone.