Mr Bouchard has been coming under increasing pressure

In his first public comment about the resignation, Mr Bouchard acknowledged that he had failed to secure independence for Quebec - the fundamental aim of his party - and said he wanted to make way for a leader who could win more public support for the separatist cause.

But he devoted a substantial section of his speech to condemning once again anti-Semitic comments made just before Christmas by the parliamentary candidate, Yves Michaud.

Mr Bouchard said he couldn't imagine how the independence debate had led party members to compare the situation of the French-speaking Quebecers to the suffering of the Jews in the Holocaust.

He said those statements had been harmful to Quebec's reputation worldwide, but he hoped that the quick condemnation by the National Assembly would lessen their impact.

Vaccuum

The issue has divided the party, with hardliners using what's become known as "the Michaud affair" as a way of attacking Mr Bouchard for failing to push harder towards another independence referendum.

Since gaining power five years ago after helping to revive the flagging separatist campaign in the last referendum, which his party only narrowly lost, Mr Bouchard had made it clear that he only wanted to hold another vote if victory looked certain.

Instead, he has focused on other political issues, including successfully improving Quebec's economic performance.

Mr Bouchard's resignation leaves a political vacuum in his party.

The separatist cause looks weaker after his departure and, as a result, federalists believe that Quebec is more likely to remain within the federation.

So the Canadian Prime Minister, Jean Chretien, seems to have one more reason to celebrate on what is his 67th birthday: Now his most fearsome separatist opponent in Quebec is stepping down.