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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared U.S. setting bad example on protectionism - Sarkozy 12 Mar 2010 Venezuela's Chavez calls for internet controls 13 Mar 2010 Att'y general failed to give legal briefs to Senate 12 Mar 2010 Google "99.9 pct" sure to shut China search engine-FT 13 Mar 2010 "Insulted" by Israel, U.S. scrambles to save talks | Video 13 Mar 2010 Venezuela's Chavez calls for internet controls 13 Mar 2010 Nurses' union: Care does not include sex 11 Mar 2010 Cheap cigars, politics and the Volcker Rule 12 Mar 2010 Lehman report may point way for criminal charges 12 Mar 2010 U.S. judge rules for Chevron in Ecuador case 11 Mar 2010 Pictures Best of the week A sampling of our top photos from the past week. Slideshow Sarkozy faces heavy loss in French regional poll James Mackenzie PARIS Sat Mar 13, 2010 6:30pm EST France's President Nicolas Sarkozy delivers the inaugural speech at the international conference on major forest areas in Paris, March 11, 2010. Credit: Reuters/Philippe Wojazer PARIS (Reuters) - French President Nicolas Sarkozy faces a regional vote on Sunday that opinion polls suggest will result in a heavy loss for his center-right UMP party in the last ballot box test before he comes up for re-election in 2012. World Unemployment in France is running at more than 10 percent, public finances are under growing strain and a series of controversies over issues ranging from lavish executive pay to immigration and security have undermined Sarkozy's popularity. "Rarely has a regional election been so national," the leftwing daily Liberation declared in an editorial on Saturday. "The last vote before the presidential election in 2012. It can change the political landscape." Sarkozy has said the election will be about local issues and he has ruled out a major reshuffle if the results are as bad as expected, but he said last week that he would be "attentive" to what voters say and some cabinet changes are possible. According to a survey published on Friday by the TNS Sofres polling institute, the opposition Socialists had 31.5 percent support going into the first round of the election, compared with 29 percent for the UMP. Sunday's vote will be followed by a second round on March 21, when the top two parties in each of the 26 regions will face each other in a decisive runoff. The Socialists should pick up second round votes from the Greens and various far-left parties which outweigh the far-right National Front and a small centrist party where support may go to the UMP. Only in the eastern region of Alsace does the UMP look like winning. The last polls close in major cities at 8.00 p.m. (3 p.m. EST) with an initial first round result due later in the evening. FINANCIAL MARKETS WATCHING The 26 regional councils, responsible for issues ranging from maintaining school buildings to local transport, have little economic power. They normally attract scant interest and surveys suggest abstention may be as high as 50 percent. But the message the vote sends will be closely watched outside France for the possible impact on the pace of reform and for the future of key government ministers including Economy Minister Christine Lagarde and Prime Minister Francois Fillon. "What matters most for financial markets is the distribution of votes in the first round and whether or not this can be depicted as a 'no confidence vote' in the government," BNP Paribas analyst Dominique Barbet said in a note to clients. With the public deficit seen at 8.2 percent of gross domestic product after the billions of euros in stimulus measures pumped into the economy last year, the government faces a major task to get state finances back under control. Sarkozy has pledged to continue with a major overhaul of the pension system due to be completed later this year but in an interview with Le Figaro last week, he signaled a pause in the pace of reform next year. He has largely stayed out of the campaign, in line with the French convention that the head of state should not be too involved in electioneering but his sliding personal approval ratings, currently around 36 percent, have not helped his party. The Socialists, who control 20 of the 22 mainland regions after a triumphant campaign at the last regional election in 2004, are aiming for a grand slam this time and the government may be able to claim a success if they prevent it. (Editing by Jon Hemming) World More from Reuters Republicans say door open on financial reform WASHINGTON (Reuters) - A bipartisan financial regulation reform bill could still be worked out in the Senate, despite a breakdown in negotiations, key Republicans said in a letter obtained by Reuters on Saturday. "Insulted" by Israel, U.S. scrambles to save talks | Video Euro finance ministers to agree on Greek aid: source Obama, Medvedev happy on arms pact, signing seen near China's Wen gives no ground on calls for yuan rise Afghanistan eases ban on news coverage of raids » More Top News "Cash for keys" to buy homes A hot new loan-selling business is freeing Americans from crushing debt and enticing mortgage investors hungry for a deal. Full Article Home loan demand nudges higher Housing Paying for the right to choose It's one thing to have to pay for extra baggage, but no fee irks airline travelers more than this. Full Article 48 hours in Caracas Lima airport lounge voted world's best life © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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