French PM in battle of strength over youth jobs law

Hundreds of thousands of people are expected to take part in a national strike in France today in a trial of strength for Prime Minister Dominique de Villepin over his flagship youth job contract.

Commuters faced travel chaos, with rail workers launching a 36-hour stoppage late yesterday, in response to strike calls by trade unions and students who want the government to scrap the CPE First Job Contract. Opponents say it will create a generation of "throwaway workers" and fail in its aim of reducing high unemployment among youngsters.

Unions say 135 demonstrations are planned today after failed attempts to break the deadlock between Mr Villepin and union bosses. Air and rail travel are likely to be badly hit.

"We hope that after the protests the government... withdraws the text," said Socialist party spokesman Julien Dray. "There is no other solution."

Mr Villepin has invited unions and student bodies to meet him tomorrow to find common ground.

"It could remain a problem if the government maintains its position on not withdrawing the law. I think tomorrow's strike will be decisive," Julien Vianello said at his car rental shop in Paris, its windows boarded after being smashed during demonstrations which turned violent last Thursday.

Business groups have warned the government the economy could be damaged by the protests. Restaurant owners and shopkeepers fear tourists will stay away from France, especially after rioting by angry youngsters in city suburbs late last year.

Britain's foreign ministry warned travellers to avoid areas where demonstrations are planned. Police, criticised for being passive, will be watching for troublemakers at rail stations.

French commentators say the mass demonstrations and the risk of violence provide Mr Villepin with the biggest test of his 300 days in office.

Fears of a broader revolt have been fuelled by incidents in Paris last week including looting, clashes with riot police and the mugging of student demonstrators by hardcore elements.

Mass street demonstrations are closely watched in France after protests over pensions reforms in 1995 which were widely credited with causing the conservatives to lose snap elections called two years later - in part on Mr Villepin's advice.