The sign of a sick country...

[chiefhogskin48]

I've always wondered how they can guiltlessly bring their country to a halt, doing more harm to the average Frenchmen than to the thing they're protesting. Just because they want to retain their ability to retire with a full pension 2.5 years before the private sector.

http://www.economist.com/agenda/displayStory.cfm?story_id=1824030

THE French unions are used to getting their own way. Their nationwide protests in 1995, to block a proposed pension reform, led to the crushing electoral defeat two years later of the centre-right government of Alain Juppé. This time they hope that Jean-Pierre Raffarin, another conservative, who became prime minister last year, will back down before things get to that. Mr Raffarin’s plan to make public-sector workers pay pension contributions over 40 years (up from 37.5 years at present), bringing them in line with the private sector, has triggered a wave of demonstrations around the country, and a general strike that brought the country to a halt on May 13th. On Tuesday June 3rd, transport workers, postal staff, ambulance drivers and other public-sector workers stayed at home as the unions staged a second general strike. Though the disruption caused was less severe than in the first, it showed the unions are still in no mood for compromise.

Mr Raffarin scored a victory by agreeing a deal with two union groups in the middle of last month, but opposition stirred up again after teachers’ unions decided to link the pension reform to their separate gripe about plans to give local government more control of education. The government has agreed to postpone the implementation of this and another controversial education reform, affecting universities, until the autumn. However, Mr Raffarin appears to be standing firm on the pension reforms, which he will lay before the French parliament next week. According to Medef, France’s main employers’ federation, it is vital that he do so: pension reform is just one of a long list of problems, including a lack of labour-market flexibility and high unemployment, afflicting the French economy, according to Ernest-Antoine Seillière, Medef’s head.

France

The website of the prime minister outlines the proposals for reform of pensions and working hours. France's employment ministry gives information on negotiations and the strikes (in French). The Ministry of Economics, Finance and Industry gives some statistics and information in English. The EU posts economic statistics and indicators for member countries. Its economics and financial affairs department details the stability and growth pact, and publishes a recent paper on the economic and financial consequences of ageing populations. See also the EU's employment and social affairs department. The OECD posts research and information on ageing societies

The structural problems in the French economy have been masked for years by its relatively good performance versus other euro-zone members. Under the 1997-2002 left-wing government of Lionel Jospin, the French economy prospered, providing a contrast to its German neighbour, which was still struggling to integrate East Germany. Mr Jospin won popularity by introducing a 35-hour week, for no less pay than the typical 39-hour week that it replaced. The health of the French economy—it grew on average at 3.6% a year between 1998 and 2000, and 1.6m jobs were created from the start of 1997—confounded many economists.

However, a report by Jean Pisani-Ferry, an economist, at the end of 2000, laid to rest the notion that it was due to the 35-hour week creating a demand for more workers. For one, Mr Jospin was not quite as socialist as he liked to appear. For example, he secured certain concessions, allowing employers more flexibility, in exchange for the 35-hour week, which mitigated its effect. And he “opened to capital”, or partially privatised, several state-run bodies, which helped keep the public finances in shape. Moreover, the measure coincided with a boom in the global economy.

The economic backdrop for Mr Raffarin is much less rosy. The worldwide economic downturn has been accompanied by a stockmarket slump that makes it much more difficult for him to sell the idea of funded private pensions, even if Mr Chirac does call them pensions “à la française”. In April, the government revealed that France’s economic growth had fallen to 1.2% last year from 2.1% in 2001. Even more worrisome for the government, the trend appears still to be downwards. Industrial production fell slightly in March. The unemployment rate has nudged up from 8.9% a year ago, to 9.3% now.

The pensions crisis threatens the long-term health of the public finances, which are already in a sickly state as a result of the economic slowdown. The public-sector deficit has breached the limit of 3% of GDP imposed under the euro-zone’s “stability and growth pact”. France is not alone: Germany has also breached the limit. However, while Germany has already taken harsh measures to reduce the gap, France has been more reluctant, though on Monday, under pressure from a meeting of EU finance ministers in Luxembourg, the French government agreed to try harder to reduce its deficit.

On the contrary, Mr Chirac intends to cut rather than raise taxes: his election manifesto last year promised to cut income tax by 30% over his five-year term. The government may be less specific about its tax-cutting targets these days, but the intention was reaffirmed by the budget minister last month. Among a slew of business-friendly reforms, capital-gains tax exemptions are being raised and smaller firms are being given more time to implement the 35-hour working week.

These reforms will be welcome, but they are unlikely to be enough. After all, France, despite the healthy growth rates of yesteryear, is now second bottom (after Italy) of a red-tape league put together two years ago by the Organisation for Economic Co-operation and Development. And, despite his rhetorical affection for entreprise, Mr Raffarin is accused by Medef of not doing enough to deal with the consequences of the 35-hour week or another of the previous government’s measures, a “law of social modernisation”, which made it even more difficult to sack people. The demographic case for pension reform is clear-cut. If Mr Raffarin cannot face down the unions on this one, he has little hope of forcing the unions to accept the sort of labour-flexibility measures that are needed to create the jobs the union bosses claim to want

[redman]

When socialism's sow decides to withdraw a nipple, the piglets get angry. Why is this a surprise?

[chiefhogskin48]

Originally posted by redman

When socialism's sow decides to withdraw a nipple, the piglets get angry. Why is this a surprise?

:laugh:

Good point. But it never ceases to amaze me that more or less the entire public sector can simply strike, bringing a nation to a screeching halt, with seemingly no consequences. Union actions are "below the belt" when they mainly affect the people themselves, whom have little say in the matter itself. I mean, ambulance drivers on strike? Did firemen and policement also take a day off? It's absurd and selfish. I'm glad those sort of things don't happen here.

[Funkyalligator]

Its amazing how much different unions in Europe especially France are compared to the US...its actually pretty pathetic how little they work and how much stuff they demand.