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 | Newly appointed French Prime Minister Dominique 
 de Villepin, top, looks at his predecessor Jean-Pierre Raffarin 
 after the handover ceremony, on the steps of the premier's office in 
 Paris Tuesday, May 31, 2005.(AP) |   
 French President Jacques Chirac named loyalist 
 Dominique de Villepin as his new prime minister on Tuesday in a shake-up 
 of the government following his crushing 
 
 defeat over the European Union constitution. 
  Villepin replaces the unpopular Jean-Pierre Raffarin who quit earlier 
 on Tuesday. He is a former interior and foreign minister who angered the 
 United States but won French hearts with his fierce opposition to the 
 U.S.-led war in Iraq. 
  He now has the task of reshaping government policy 
 after voters showed their distaste 
 for Raffarin's economic policies and high unemployment in 
 Sunday's vote on the EU charter. 
  Chirac and Villepin, 51, did not immediately unveil the new government, 
 which is expected to be announced on Wednesday. Some political 
 commentators predict a slimmed-down cabinet. 
  The president was due to address the nation later on Tuesday and lay 
 out policy for the new team, which will hope to govern France until 
 presidential and parliamentary elections in 2007. 
  Villepin saw off a challenge from Nicolas Sarkozy, a Chirac rival for 
 the presidency who leads the governing Union for a Popular Majority (UMP) 
 party, who had all but demanded the prime minister's job for himself on 
 Sunday. 
  French political commentators said there was persistent speculation 
 that Sarkozy, 50, could return to the government as interior minister and 
 Villepin's number two -- as well as remaining the leader of the UMP. 
  In a short statement, Raffarin defended his record over the past three 
 years and said Sunday's defeat had not triggered his decision. 
  "I took this decision independently of the outcome of the referendum on 
 the European constitution," he said. 
  Promotion of the loyal Villepin could be a sign Chirac intends to fight 
 back after the referendum humiliation and keep open his options for 
 seeking a third term in 2007. 
  A career diplomat, aristocrat and sometime poet, 
 Villepin won applause at the United Nations and plaudits 
 at home on the right and the left for 
 opposing the U.S.-led war in Iraq, but angered and frustrated Washington. 
  Washington and Paris have since been rebuilding ties. 
  Villepin's appointment is likely to go down well with European allies. 
  At home, Villepin's priority will be to create jobs in an economy 
 burdened with 10.2 percent unemployment, a more than five-year high, to 
 boost growth and curb public spending. 
  Although he will have the president's full support, Villepin has little 
 experience in the rough and tumble of domestic politics. He has never 
 stood for election and has prickly relations with the parliamentary 
 majority he now relies on. 
  In 1997, Villepin was a prime mover behind Chirac's early dissolution 
 of parliament, which saw a conservative majority blown away by a 
 Socialist-led coalition. 
  The disaster earned him the nickname "Nero," a reference to the emperor 
 who famously left Rome in flames. 
  (Agencies)  |