Why The French Pension System Reform Falter

Submitted by: Jerri Lily

French retirement system, the controversial reform bill on the 27th in the French National Assembly (lower house of parliament) to 336 votes to 233 votes in the final outcome of voting was adopted, but that does not mean completion of the legislative process continued for nearly two months of this reform the end of the protests. Recent French unions strike will be held nationwide demonstrations. French government and people in the retirement system will have on the reform of why such sharp differences, to promote this reform, why so difficult?

Why reform the retirement system

French social security system is the high welfare after 60 years of repeated changes after the war built up. During former President Francois Mitterrand came to power, the French government in 1983, the statutory retirement age from 65 to 60 years.

But since the 20th century, 90 years, as the population ages and economic globalization, the French social security system more and more difficult to sustain. On the one hand, the Government has to bear the heavy financial burden resulting; the other hand, high welfare, high taxes, vacation time longer than the working hours, making the French economy in the global loss of competitiveness.

French government figures show that about retirees in France 23.8% of the population. Annual pension payments by the national debt has reached 1.5 million retirees. If you do not reform the retirement system, the French pension deficit by 2018 will reach 42.3 billion euros. By then, the pension system, overwhelmed by the fear of collapse.

July 13 this year, the French Cabinet approved the draft pension reform bill, the statutory retirement age extended from the current 60 years to 62 years old, will be able to receive full pension from 65 years in the retirement age to 67 years to pay pension number of years up to 41 years.

Why do people refuse to reform

France must reform the retirement system has become the consensus of the majority, but because of this reform involves the vital interests of each person, so it is very difficult. Since 1995, the French government raised the retirement system reform program each time by the opposition parties and trade unions are the opposition and social unrest sparked controversy several times, and ultimately could not continue.

After the announcement of the reform program, but also major trade unions in France immediately aroused strong dissatisfaction and opposition. The main opposition Socialist Party believes that this reform was “very unfair”, it violated earlier to work, work intensity of the working-class interests.

August holiday after the opposition parties and trade unions in France 6 times so far organized a national cross-sector strike demonstration, more than the number of participants each time, up to a high of 350 million. According to poll results released last month, half of French people think we should reform the retirement system, but about Qicheng French reform bill proposed by the Government not satisfied.

In Paris, one of the demonstrators told reporters: “The French unemployment rate is high, many young people find work, the Government let the older people still extend the retirement age.”

Firm attitude of the Government Reform

The face of continuing protests, the French government’s insistence on pursuing reform of the retirement system’s attitude is still firm. French President Nicolas Sarkozy believes that the importance of the retirement system reform, the French firm to implement this reform will continue. He also stressed as important to maintain social order and called on parties concerned to remain calm, take a more responsible attitude.

Fearing social unrest, the French daily “Le Figaro” 23 poll released Wednesday showed that 56% of the population that the council after the final vote, the protests should end. But some of the more radical unions are still taking a hard line, said protests would continue.

From a political perspective, the French pension system reform was also a dispute between the Government and opposition parties and trade unions of the game. From the 2012 presidential election now more than a year, the opposition is committed to using the social trend to consolidate “people advocate” status, and seek a favorable position in the general election. At present, public opinion and public support for the government and the opposition parties have been the primary target.

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