Paris  - The French labour market shed nearly 80,000 jobs in February, the Labour Ministry announced on Wednesday.

As a result of the tenth consecutive monthly rise in French unemployment, more than 2.38 million active job-seekers are now registered as unemployed in France.

The announcement follows France's worst-ever monthly increase in unemployment in January, when more than 90,000 new jobless were registered.

The French government is predicting the loss of some 300,000 jobs for 2009, but many observers feel that this forecast is far too optimistic.

Prague/Strasbourg, France - Czech Prime Minister Mirek Topolanek said Wednesday that his government's fall will not threaten his country's ability to chair the European Union.

"The fact that the government has resigned won't endanger the (EU) presidency," Topolanek told EU lawmakers a day after his cabinet lost a vote of no-confidence in parliament.

Paris - French-Dutch carrier Air France-KLM said on Wednesday that it had completed its takeover of 25 per cent of the capital of the Italian airline Alitalia.

Air France-KLM is paying 323 million euros (436 million euros) for its share, but the company said it in a statement that the partnership would provide it "greater access to the Italian market."

Paris - The French government has delivered an ultimatum to companies on proposing a framework for bonus and other payments to their executives or the state will impose santions, a close adviser to President Nicolas Sarkozy said on Wednesday.

The companies have until March 31 to come up with proposals, Henri Guaino told France Inter radio. "This is not an invitation; it's an ultimatum.

Paris - French President Nicolas Sarkozy on Tuesday said that there should be no more severance payments or bonuses to executives of French firms who have performed badly.

"There must be no more 'golden handshakes'. There must be no more bonuses or rewarding of free shares or stock options in a company that receives state aid, that undertakes massive job cuts or resorts to putting large numbers of its employees on short-time work," Sarkozy said in an address in the northern city of Saint Quentin.