Chirac sacks foreign minister after EU vote

French President Jacques Chirac dismissed his foreign minister yesterday in a government reshuffle intended to win back voter confidence after his crushing defeat over the European Union Constitution.

Philippe Douste-Blazy, a 52-year-old former health minister who is loyal to Mr Chirac but a novice in international affairs, replaced Michel Barnier as foreign minister.

Mr Douste-Blazy faces the tough task of maintaining France's influence in the EU despite the referendum defeat, which has left Mr Chirac's popularity at an all-time low and may have killed his chances of winning a third term as President in 2007.

In a government list read out by an aide on the steps of Mr Chirac's Elysee Palace, the head of state confirmed presidential hopeful Nicolas Sarkozy in his post as interior minister even though they could be rivals in a 2007 presidential race.

Mr Sarkozy, the ambitious head of the ruling Union for a Popular Movement (UMP) party, is expected to be the government's number two under Prime Minister Dominique de Villepin. Yesterday he said the government must change the way it acts and restore voter confidence after France's rejection of the EU Constitution and called for unity in France, saying the country's economic and social situation was difficult.

Finance Minister Thierry Breton, Defence Minister Michele Alliot-Marie and Budget Minister Jean-Francois Cope and farm minister Dominique Bussereau kept their posts.

The new government was named against a backdrop of rail chaos as unions from the state rail company SNCF protested over pay and 3,000 job cuts this year. Mainline and regional rail traffic was severely disrupted but the Eurostar rail link to Britain was unaffected.

There were new faces, including Mr Sarkozy allies Brice Hortefeux and Christian Estrosi, which should strengthen his influence in a government Mr Chirac and Mr Villepin say must focus on reducing high unemployment - the voters' main concern.

Opposition deputies have already dimissed the government's chances of turning the economy around and said the same old faces will carry out the same failed policies.

Mr Douste-Blazy will be backed up by new European Affairs Minister Catherine Colonna, a former Elysee spokesman. He built his reputation as an efficient minister by guiding health reforms through Parliament last year despite protests. He was a member of the EU's Parliament for four years.

Mr Chirac will hope the new team, balanced between supporters, neutrals and Mr Sarkozy allies, can help his personal ratings recover. They nose-dived eight points after Sunday's EU vote to 24 per cent, the lowest of any President since records began.