FRANCE: French President Jacques Chirac named Mr Nicolas Sarkozy, France's best-liked politician, as his finance minister yesterday and handed him the key task of pushing through unpopular economic reforms.
In a major reshuffle following a heavy defeat for his ruling conservatives in regional elections, Mr Chirac appointed his friend Mr Dominique de Villepin as interior minister and replaced him as foreign minister with another close ally, Mr Michel Barnier.
Defence Minister Ms Michele Alliot-Marie, who has been mending ties with the US, kept her post.
Mr Chirac reappointed Prime Minister Mr Jean-Pierre Raffarin on Tuesday. But he turned to Mr Sarkozy (49) because he needs a new and popular face to win public support for the cost-cutting reforms that triggered this month's election defeat.
Mr Sarkozy, until now the interior minister, accepted the new job even though it could be a poisoned chalice. His overt presidential ambitions have strained his relations with Mr Chirac and both men know this job could make or break his ambitions.
Economic analysts said Mr Sarkozy could inject energy to reform efforts but faced a huge task overcoming anger over high unemployment, pension reform and budget cuts.
Other major changes included Mr Villepin's move into unfamiliar territory at the Interior Ministry.
Mr Villepin (50) is close to Mr Chirac and some commentators say Mr Chirac sees him as a future prime minister, particularly if the centre-right does badly in European elections in June and Mr Raffarin's position becomes untenable.
Mr Barnier (53) is a close Chirac ally and has been an EU commissioner since 1999. He is pro-European but is less publicly critical of the US than Mr Villepin. His appointment could possibly help improve ties with Washington.
Mr Chirac suggested last night to EU Commission President Romano Prodi that former labour minister Jacques Barrot replace Mr Barnier.
Mr Sarkozy replaces Francis Mer, putting a seasoned politician in the place of an industrialist, and is expected to have a wider brief than his predecessor, covering the whole reform drive.
His room for manoeuvre is restricted by France's pledge to reduce its public deficit to within EU limits in 2005. - (Reuters)