The past week has proven to be tough for French President Nicolas Sarkozy: His center-right allies suffered a hefty defeat in the weekend's regional elections and his personal approval rate hit the lowest level.

After the elections, he was forced to announce a cabinet reshuffle and a retreat from the carbon tax plan, which has been considered one of the pillar policies of this "action president."

On Tuesday, hundreds of thousands of people took to the streets across the country to protest against the government's pension and wage policies, with union leaders voicing worries about rising unemployment and falling spending power.

Observers say these challenges point to the rocky road the president will have to take during his remaining presidency.

Elections worst hit

On Sunday, Sarkozy's center-right allies suffered their worst electoral defeat in more than five decades, as the opposition left-wing took over all but one of 22 regions in metropolitan France, leaving the ruling UMP only with the Alsace department.

The failure is seen as public dissatisfaction over the first half of Sarkozy's term. The president responded with an immediate cabinet reshuffle and a humiliated retreat from his promotion of the carbon tax.

Rather than the formerly expected "modest modification," Sarkozy sacked Labor Minister Xavier Darcos and two other ministers.

The decision to oust Darcos was regarded as an outlet for public anger over increasing unemployment, while his replacement Eric Woerth will have to play his new role well to meet the president's high expectations.

Francois Baroin, a caustic Sarkozy-critic, was named the new Budget Minister, and Georges Tron, an ally of Sarkozy's old rival Dominique de Villepin, was made State Secretary.

Opening his cabinet to opponents of the center-right camp, Sarkozy hoped to lessen internal obstacles over his remaining term of office, observers here pointed out.