PRESIDENT Jacques Chirac of France, in a gesture of support, has invited the unpopular Prime Minister, Mr Alain Juppe, to his holiday retreat to prepare for the end of the summer break.
The invitation, announced by the president's office yesterday, aimed at halting rumours of a cabinet reshuffle or replacement of Mr Juppe, which helped put the franc under pressure on foreign exchange markets this week.
Mr Chirac's office said Mr Juppe would stay at the presidential holiday residence of Bregancon, a fortress joined to the south coast of France by a causeway, on the weekend of August 24th and 25th.
Mr Juppe visited Mr Chirac at Bregancon last summer. The repeat invitation seemed designed to quash speculation about his standing, sparked by the president's consultations in the past week with political leaders critical of the prime minister.
Officials said this year's visit would underline the close relationship between Mr Chirac and Mr Juppe following criticism of the prime minister's performance - chiefly over the record 12.5 per cent unemployment rate - from within the centre right coalition.
Three trade unions warned earlier yesterday that 1997 budget cuts announced by the government on Wednesday could trigger unrest in September.
Mr Chirac's office declined to comment on a report in the British based weekly newspaper, the European, sourced to financial market rumours, that the president was looking for a way to force the governor of the Bank of France, Mr Jean Claude Trichet, to resign. A government source said the report "doesn't deserve comment".