In a maneuver to save face for Villepin, Chirac signed the controversial measure into law last weekend -- but ordered the talks.
Villepin refused to prejudge the outcome of negotiations, saying "we will draw conclusions together" and "make the necessary choices to combat unemployment."
He backed down several notches from his inflexible stance of the past.
"I am pragmatic. In this time of dialogue it is important to be open," he said. "I am listening."
But the prime minister insisted that the 23 percent rate of youth unemployment that climbs above 50 percent in depressed, heavily immigrant suburbs, is at the heart of "French difficulties." It was a major cause in triggering riots by suburban youths last fall.
"It is my responsibility, as head of the government, not to allow such a situation to go unanswered," he said. "Our country today needs action."
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