Blow for de Villepin as Chirac alters law

FRENCH President Jacques Chirac yesterday threw out part of a youth labour law that triggered massive protests and strikes, bowing to intense pressure from students and unions and dealing a blow to his loyal premier in a bid to end the crisis.

While some unions celebrated what they called "a great victory", students who had planned more demonstrations appeared cautious, saying their movement would continue for now.

Prime Minister Dominique de Villepin, who devised the law, had faced down protesters for weeks, insisting that its most divisive provision a so-called "first job contract" was necessary to reduce high unemployment rates among French youths by making it easier for companies to hire and fire young workers.