French Prime Minister Gabriel Attal has decided to suspend a previously proposed overhaul of the unemployment benefits system after the first round of parliamentary elections. Why?
As the journalists were quick to note, this was done in order not to “irritate” the population with unpopular measures on the eve of the second round of voting. Let us remind you that last Sunday, the far-right coalition led by the “National Union” (RN) won 33% of the votes, overtaking the left alliance “New People’s Front” with 28%. The presidential bloc “Together for the Republic” came third, gaining just under 21% of the vote.
It was supposed that the decree on revision of allowances would be published on July 1, but its publication was postponed.
Bring the unemployed back to work?
Earlier, the government reported that the adjustment of payments is planned as part of President Macron’s package of economic reforms. The discussion is, among other things, about reducing the maximum period of payment of benefits from 18 to 15 months and increasing the length of service necessary to receive them. According to Atal, “these measures are not a means of saving; they are aimed at attracting more French people to the labor market.” The left-wing opposition has already called the changes “harsh”, promising to do everything to block them. RN far-right leader Jordan Bardella has also criticized the reform. “I’m tired of the fact that we systematically require efforts from the same people,” he said.
Republican candidates are divided on the issue, while labor unions strongly oppose the reform.
And do we need to change the principles?
Some experts, however, stress the need to increase the number of people employed in France to stimulate growth, an idea that is at the heart of Macron’s economic policy. In addition, the IMF previously warned France about a high debt burden, calling on the authorities to take more active actions to reduce the budget deficit. Which in 2023 was 5.5 percent, surpassing the goal set by the state to stay within the framework of 4.9 percent.
“If France wants full employment, reindustrialization, if it plans to remain a leading economic power, then we must move towards full employment and continue the reform of unemployment benefits,” Finance Minister Bruno Le Maire said in an interview with France Inter on Monday. “I am not going to to change my principles within 24 hours just because I’m trying to convince someone.”