Jospin outlines economic battle

Jospin: The economy is a legitimate concern

PARIS, France -- French Prime minister Lionel Jospin has announced plans to curb restrictions on the national working week as part of measures to boost the economy.

Jospin made the announcement on French TV as he attempted to explain how France would fight growing unemployment while keeping businesses competitive.

France has enjoyed a growth of more than three percent for the past three years but the French statistics agency has predicted that growth this year will be 2.3 percent.

As a result the economy has become a talking point in French cafes and bars.

"Now that the situation is a bit less favourable, I note that the slowdown is a bit less marked in France" than in other industrialised countries, Jospin told TF1 TV.

Jospin, who is expected to fight Jacques Chirac for the French Presidency next year, sought to reassure voters by announcing he would allow more flexibility in his flagship 35-hour work week law.

He said exemption clauses would be introduced for companies employing fewer than 20 staff.

Socialist Party spokesman Vincent Peillion said the government should continue the policies that had brought France higher growth than its European partners -- fighting unemployment and supporting consumer spending.

He said: "At the same time, we must make sure our companies remain competitive and the government will do what's needed so this confidence continues.

"The French are worried, there is a slowdown in world economic growth. It is his (Jospin's) role as head of government to indicate what he plans to do so the country and all its citizens can overcome this phase as best as possible."

Jospin has enjoyed broad public support in recent years as he presided over several years of falling unemployment and a prosperous economy.

But recently he has been coming under fire from leftist members of his coalition including the Greens and the Communists.

Latest opinion polls show Chirac slightly ahead of Jospin in voters' preference for the next president.