Representatives of French unions and unemployed organisations have criticised the refusal by Prime Minister, Lionel Jospin, to abandon his tight budgetary policies in spite of their six-week campaign for higher benefits.

Speaking on French television, Mr Jospin ruled out tax increases to fund higher benefits and said he wanted to index-link benefits to inflation and start a programme to help the long-term unemployed.

Campaigners said they had hoped for more and felt let down.

The parliamentary leader of the opposition RPR, Jean-Louis Debre, said the Prime Minister had shown himself powerless to solve France's problems.

From the newsroom of the BBC World Service
 

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