London Daily

Focus on the big picture.
Thursday, Mar 30, 2023

Macron is either brave or foolhardy as he tries to get the French to work for longer

Macron is either brave or foolhardy as he tries to get the French to work for longer

An explosive year lies ahead as the last time these policies were tried there were months of industrial unrest and protests.

Emmanuel Macron is clearly either very brave or very foolhardy.

What is beyond doubt, though, is that the French president is not lacking in self-confidence.

Those are the conclusions that can be drawn after Mr Macron unveiled a policy reform that, the last time he tried it, led to street protests in France and months of industrial unrest.

The president is trying - as many of his predecessors have over the last three decades - to get the French to work for longer.

Mr Macron wants to raise the age at which French workers are entitled to collect a pension from the state from the present 62. He has not yet made clear whether it would be to 64 or to 65 but the former looks more likely.

Raising the state retirement age to 64 would still mean a retirement regime more generous than the UK and many other European countries.

Either, though, would be deeply offensive to trade unions.

Macron's opponents

Laurent Berger, head of CFDT, the largest union in France, said last week of the proposals: "If the retirement age is pushed back to 65 or 64, the CFDT will do what we've said we'll do, we will resist this reform by calling on workers to mobilise."

The proposal, seen as the biggest plank in Mr Macron's plan to modernise the French economy, is likely, then, to be explosive.

Ranged against the president will not just be the unions. Marine Le Pen, the influential far right politician Mr Macron beat to secure his second term in the Elysee Palace, is fiercely opposed to raising the retirement age. She has described the proposals as "terribly unfair" and particularly for younger workers.

Other opposition parties will also be against the proposals.

The only party that will potentially be lining up alongside Mr Macron's Renaissance Party to support the measures will be Les Republicains, the centre-right party of former presidents such as Jacques Chirac and Nicolas Sarkozy, although the terms of its support include making the retirement age 65 and not 64 and raising the state pension, when the measure goes through, from a minimum €900 per month to €1,200.

His rationale

Mr Macron's justification for raising the retirement age is that France cannot afford to allow so many workers to retire at so young an age.

Like other European countries, he is aware of the pressures caused by an ageing population and a slowing birth rate, which means that, in years to come, France will be relying on a shrinking number of people of working age to pay the pensions of a growing number of retirees.

Other alternatives he considered, but decided not to go ahead with, include putting up taxes, increasing government borrowing or cutting pensions.

He told the French public in his new year address: "We must work longer. The aim of the reform is to strengthen the pension system. If we do nothing it will be threatened, as we will rely on debt to finance it."

France's young workforce

Doing nothing was certainly not an option.

France already has a significantly lower proportion of older workers still active in its workforce than other advanced economies.

As of 2021, just 59.7% of 55 to 64-year olds in France were still in employment, compared with 79.1% in Japan, 74.1% in Germany, 73.8% in the Netherlands, 67.1% in the UK, 64.7% in the United States and 64.4% in Spain.

The current retirement age in France, of 62, is also considerably earlier than elsewhere in Europe.

European retirement ages

It is currently 66 in Germany, rising to 67 in 2031, while in the UK it is also currently 66 but will rise to 67 between 2026 and 2028. Spain, similarly, will see its retirement age rise from the present 66 to 67 by 2027. Other countries across the EU, including the Czech Republic and Italy, are also in the process of raising their state retirement ages.

Germany, which is already grappling with shortages of key worker groups such as nurses, is even mulling a further increase in the retirement age. Even Italy, one of the few European countries with a lower labour force participation rate among older workers than even France, is in the process of doing so.

What is clear then is that, even if Mr Macron gets his way, France will still have a more generous arrangement than most of its European peers.


A protest in Paris against pensions reform in January 2020

Previous attempts


If the president does succeed without too much disruption, he will have done so where numerous of his predecessors either failed, or had to water down their proposals in the face of bitter opposition.

In 1995, Mr Chirac and his then-prime minister, Alain Juppe, were forced to back down when they sought to rein in the generous pension benefits paid to civil servants in demonstrations that left much of France paralysed by strikes and demonstrations.

There were similar demonstrations, involving more than one million protestors, when in 2003 another prime minister, Jean-Pierre Raffarin, sought to make public sector employees work for 40 years to qualify for a pension, as was the case with their peers in the private sector. That measure actually made it onto the statute book despite weeks of strikes.

Mr Sarkozy was more successful when, in 2010, he sought to raise the retirement age from 60 to 62, although again it only came after weeks of sapping strikes and demonstrations involving millions of people.

But Mr Macron himself had to back down when, in 2020, he sought to create a single universal state retirement plan to replace the 42 individual plans then in place and introduce a points system that linked the pension paid to the contributions a worker had made during their career.

The proposals led to the longest strike in French history and were abandoned at the outset of the COVID pandemic.

Now he is having another go.


Solving skills shortages


The prize, though, makes it worth a try. France, like other European countries including the UK, is grappling with shortages of skilled workers due, in no small part, to people taking early retirement.

So anything he can do to get people to stay longer in the workforce will have economic benefits as well as saving taxpayers money.

Mr Macron will also have noted the rewards reaped by other European countries that have been prepared to engage in bold welfare reforms.

A German success story


Among the most successful in this regard has been Germany.

It has enjoyed a sharp reduction in unemployment since its former chancellor, Gerhard Schroder, pushed through a series of reforms to the country's welfare state from 2003 to 2004.

The flagship changes, called 'Hartz IV' after the former Volkswagen personnel director who came up with them, dramatically cut unemployment benefits (previously, unbelievably, paid at a rate of 60% of an unemployed person's pay in their last job) and for the first time obliged unemployed people to accept offers of work.

Germany was rewarded by a drop in its jobless rate from 12.6% in 2005 to just 3% as of November last year.

It is understandable, then, why Mr Macron has decided to nail so much of his reputation and personal political capital to pensions reform.

Be in no doubt, though, it is going to be explosive. France can expect a year of industrial unrest.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Tsai Ing-wen received a "warm welcome" from the Chinese people in the US.
You Are So Beautiful
EU's von der Leyen: "We know this is an era where we rely on one single supplier. China. 98% of our rare earth supply."
Postmodern Jukebox European Tour Version
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Sattahip Motor Show 20
Nashville style execution
SONATE AU CLAIR DE LUNE - Moonlight sonata
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
A kiss to build a dream on
Former Starbucks CEO Howard Schultz:
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Mean Blues
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
La Chansonnette
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
Pattaya Addicts
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Franz Liszt - Liebestraum - Love Dream
Social Media censoring users for saying the true
Dream a little dream of me
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
Unchained Melody sung like you've NEVER heard!
AMERICA, 2023
Dave Brubeck - Take Five
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Rondo Alla Turca
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
Kiss of fire
AOC explains why she opposes banning TikTok
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Israel Cachao López - Guajira Clásica
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Gordon Moore, a co-founder of Intel Corporation, died at 94
Strauss - Radetzky March - Karajan
Powell: Silicon Valley Bank was an 'outlier'
La vie en rose
Bordeaux town hall set on fire in France pro democracy protest
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Police violence in Paris
Orlando Cachaito Lopez Redencion
Paris: Some of the police are stepping down and showing solidarity with the protesters.
Edith Piaf - NON, JE NE REGRETTE RIEN
Donald Trump arrested – Twitter goes wild with doctored pictures
RADETZKY MARCH-2008-Wien, New Year Concert
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Only you (And you alone)
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Strangers In The Night
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Charles Aznavour - La Boheme
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
Summer time
Paris Rioting vs Macron anti democratic law
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
'Sexual Fantasy' Assignment At US School Outrages Parents
Aux Champs Elysees
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Credit Suisse to borrow $54 billion from Swiss central bank
La Mer (Beyond the Sea) – Avalon Jazz Band
The BBC problem about China
She
Strikes-Hit UK Pledges 94 Billion Euros In Cost-Of-Living Budget
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Russian Hackers Preparing New Cyber Assault Against Ukraine
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
Radiohead - Creep
UK face biggest fall in spending power for 70 years
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Perhaps, Perhaps, Perhaps - Multi-Couples
If this was in Tehran, Moscow or Hong Kong
Pentatonix Havana
Announcing GPT-4
Paula Cole - Autumn Leaves
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Oscar Benton Bensonhurst Blues
Drew Barrymore
OH NANANA vs ABUSADAMENTE
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
A brief banking situation report
NIGHTWISH - The Phantom Of The Opera
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Motorshow 2016 Tanjay Negros Oriental
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Monica Bellucci - Ti Amo
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Michael Jackson - Billie Jean Milena The Voice France 2018
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×