New French Prime Minister Dominique de Villepin reiterated on Saturday that his government's main priority was the battle for jobs, saying the current unemployment rate was "unacceptable." "10 percent of unemployment in France, more than 20 percent of unemployment for the young, these are unacceptable situations," Villepin told members of his UMP party in a speech. "You know my government's priority: It's the fight for jobs."
France's unemployment rate has hit a five-year high of 10.2 percent and many French voters have cited worries about jobs as key reason why they rejected the European Union constitution in a referendum on May 29.
Villepin's comments came after he said on Wednesday he would abandon income tax cuts planned by President Jacques Chirac to help fund new jobs.
"It's not by increasing the deficit that we prepare tomorrow's recovery," Villepin told party delegates, referring to his decision to suspend the tax cuts.
France has vowed to bring its public deficit below the EU's deficit ceiling of three percent of gross domestic product this year after breaching the limit for three years running.
"Public spending must be oriented towards what is useful, all that can pull our country upwards," Villepin said.
Chirac vowed in his presidential campaign in 2002 to cut income tax by a third during his five-year term. So far he has reduced it by around 10 percent.
Villepin, who was named prime minister after voters rejected the EU constitution, said France would continue to work towards further EU integration.
"France will keep all its place in Europe, it will work in solidarity with its partners, especially with Germany," he said. "France will continue to put all its energy at the service of the European project."
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