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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Sarkozy vows reforms despite vote defeat AFP - Thursday, March 25 Send IM Story Print VIDEO - Defiant French President Nicolas Sarkozy vowed on Wednesday to push on with economic reforms despite a regional election defeat for his UMP party that cast doubt on his leadership. Duration: 01:13 PARIS (AFP) - – French President Nicolas Sarkozy vowed Wednesday to push on with economic reforms while aggressively defending European farm subsidies as he fought back from a humiliating election defeat. Sarkozy struck a defiant note despite his UMP party's defeat by the left in Sunday's regional elections, reaching out to his former core supporters with pledges on business, farm subsidies, Islamic burqas and law and order. "To stop now would ruin everything we have achieved. You trusted me to modernise France. I will live up to my promises," he said, in his first speech since the election. "We need to continue to reduce charges on employment, on investment. We must continue to reject any increase in taxes," he said. He also staked out ground prized by the far-right National Front, which chipped away at his right-wing base to win a high score in the election, exploiting public fears of crime and immigration. Sarkozy reaffirmed his plan to ban full Islamic veils, which has raised racial sensitivities, and said he would crack down on violence, after a series of high-profile attacks in schools and other public venues. Political opponents and analysts said Sarkozy was seeking to limit the damage from the election by swerving to the right. "It's a move to reconquer the right, which largely abstained or voted for the National Front," said Socialist Party lawmaker Jean-Christophe Cambadelis. "It's a speech that aims to restore his position with the right-wing electorate, not to restore France's international competitiveness." Since Sunday's vote, in which the Socialists and their Green allies beat the UMP by 54 to 35 percent, Sarkozy has carried out a minor reshuffle and dumped a planned tax on carbon emissions, a cornerstone of his reform plans. This was seen by media and observers as a concession to business interests and pressure from the traditional right within his party. Sarkozy also spoke to another core constituency, France's farmers. He insisted he would resist any changes to Europe's agricultural policy, of which French farms are the biggest beneficiaries, despite pressure from other members such as Britain and Sweden for dramatic cutbacks. "I am ready to head into a crisis in Europe sooner than accept that the Common Agricultural Policy be dismantled," Sarkozy said. "I will not let our farms die." The vote defeat came as Sarkozy limbered up for his next priority: reforming generous public sector pensions, removing special conditions attached to some jobs and raising the minimum retirement age. The plan is likely to face tough resistance from unions and public sector workers. Sarkozy indicated there may be room for compromise, but vowed to bring about reform within six months. "I will not force through reforms," he said. "The required time will be spent in discussion with the social partners." But he stressed: "My duty is to guarantee that your pensions are funded." Sarkozy was elected in 2007 on promises to boost France's economy and get people back to work, but last year's recession has driven unemployment up to 10 percent, its highest level in a decade. Many observers saw Sunday's electoral defeat as a verdict on Sarkozy's policies and his style. His personal approval ratings are at an all-time low as he begins to think about re-election in 2012. Hundreds of thousands of people took to the streets and many public sector workers went on strike on Tuesday in a protest over the pension plans, wages and job cuts -- signs of a fight ahead for Sarkozy's reforms. "Three years ago we chose to be competitive. We chose work," he said. "It was an absolutely vital decision. We took it because our absolute priority is employment." 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