Borloo's social touch could ease reform fears

By Kerstin Gehmlich

PARIS (Reuters) - Jean-Louis Borloo was labeled the social conscience of France's previous conservative government, but in his new post as "super" economy minister, the 56-year-old may have to push through unpopular policy.

He and President Nicolas Sarkozy have not always seen eye-to-eye. The former lawyer was not shy in his criticism of Sarkozy when they served as ministers under former President Jacques Chirac.

In 2004, Borloo, the social cohesion minister of the time, had a run-in with then finance minister Sarkozy when he said extra money from higher fiscal receipts should be invested in jobs. Sarkozy insisted the money be used to cut debt.

But Borloo, who heads the minor Radical Party which is allied with the ruling UMP, repeatedly tops opinion polls as the government's most popular politician and Sarkozy courted his support at a dinner in a smart restaurant during the campaign.

Borloo rallied to Sarkozy's campaign, backing his reform plans, which include a shake-up of education and tax law, and a new, more flexible labor contract.

His reputation as a politician with a social focus could help Sarkozy push through unpopular job measures, which have already alarmed trade unions and students.

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Borloo joined Chirac's government in 2002, first as minister for urban renovation, then becoming social cohesion minister before taking over the difficult jobs portfolio in June 2005.

He was in the spotlight over the CPE First Job Contract, which former Prime Minister Dominique de Villepin was forced to withdraw after weeks of nationwide student demonstrations.

A canny media operator, Borloo managed to distance himself from the unloved measure, which would have made it easier for firms to hire and fire young workers.

As labor minister he won plaudits for overseeing a downturn in the unemployment rate, which hit an almost 24-year low of 8.3 percent in March.

But the jobs data was overshadowed by a row over why national statistics office INSEE delayed an annual review of jobless data until after the April/May presidential elections and questions over its accuracy.

Borloo made himself a name as mayor of the depressed northern mining town of Valenciennes, trying to overcome solve housing problems and attract investors.

As economy minister, Borloo will have to try to cut youth unemployment from the current 21 percent and lift the prospects of France's poor and ethnically-diverse suburbs, which erupted in riots in 2005.

He will need to juggle these goals with a pledge to cut France's public deficit.

His wedding to glamorous TV news presenter Beatrice Schoenberg in 2005 sparked a media frenzy.