FRENCH PENSIONS
I said earlier that the French Government's announcement in June that it intended to raise the retirement age, one of the lowest in Europe, from 60 to 62 would not be received with open arms. Far from it. At least a million people took to the streets this week to protest against the proposal (and other mooted austerity measures), while a 24-hour national strike disrupted public transport and closed schools.
It's hard to see how the Government can find a compromise. The pension system is bust; and 62 is low in comparison with both other E.U. countries and French life expectancy. Moreover, if the Government can't win this fight, then it will be difficult to push through any sort of reform, even though much is needed, and not just on pensions.
It may just be possible that this was a late summer letting-off of steam prior to sullen resignation and acceptance of the inevitable. However, I have to say that I doubt it. This looks more like a fight to the death for preservation of the French way of life, even if that way of life is economically unsustainable. Expect more protests this autumn.
Walter Blotscher
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My main student this week is a man from Greece. He is charge of the IT department of a private sector 3pl company. Another student is a French man who builds nuclear power stations.
ReplyDeleteNeither of these agree with your analysis at all. They say that the current difficulty in funding public services, including pensions is the rapacious behaviour of banks. And that these banks are the agents of Amerika.
I agree with the Greek and the frog. Lets blame the Americans! :)
ReplyDeleteHi Michael,
ReplyDeleteA million plus protesters seem to agree with your students. But that doesn't change the fact that the French Government doesn't have the money to pay these pensions. Blaming others may be comforting, but doesn't pay the bills.
Regards,
Walter
I suppose it could raise the money by spending less on other things or by increasing the taxes paid by young people. Maybe that would lead to more protests with different protesters.
ReplyDeleteIt is however the traditional protest season in France.
We can all consume less and save more, invest in more efficient technology and education. Less greek holidays, etc
ReplyDeleteregards
zangubar