Activation of Article 49.3
Anticipating a possible failure due to President Emmanuel Macron's ruling party coalition not having the necessary majority, on March 16, French Prime Minister Elisabeth Borne activated Article 49.3 of the constitution to pass the pension reform bill, depriving parliamentarians in the House of Representatives of the opportunity to vote.
The pension reform plan, which includes raising the retirement age from 62 to 64 and requiring workers to have worked at least 43 years to qualify for a full pension, was controversial from the moment it was proposed, but the way the bill was passed has only added fuel to the fire, igniting the anger of French workers.
CNN cited data from the IFOP polling organization showing that 83% of young people aged 18-24 and 78% of those over 35 found the way the government passed the bill “unjustified”. After Article 49.3 was activated, the percentage of French people opposing the reform reached more than 70%.
Why must it be passed?
Social reform, especially pension reform, is one of President Macron's top promises when he runs for re-election in 2022, a theme he has pursued throughout his previous term. For the French government, this is an urgent issue, because the country is facing a serious budget deficit and aging population.
In the third quarter of 2022, France's national debt will be 113.4% of GDP, higher than the UK (100.2%), Germany (66.6%), and comparable to struggling economies such as Spain (115.6%), Portugal (120.1%). According to Labor Minister Olivier Dussopt, if no immediate action is taken, the pension deficit will reach more than $13 billion per year by 2027. In DW, French economist Philippe Crevel also affirmed: "This reform is necessary to attract more workers to boost economic growth."
France, the UK and Germany are all struggling with labour shortages, as ageing populations and declining birth rates reach critical levels. Statistics show that in 1950, four French workers supported one pensioner (a ratio of 4/1). In 2000, the figure was 2/1. By 2040, the ratio is expected to be just 1.3/1. This will be a financial and mental health burden for workers.
France still has one of the lowest retirement ages among developed industrial countries, such as the UK (66), Germany and Italy (67), Sweden, Spain, the US and Canada (65). As for the latest retirement age, it is probably in Indonesia (68).
Workers discontent
Pension reform has long been a thorny issue in France. In 1995, weeks of mass protests forced the then-government to abandon plans for reform. In 2010, millions took to the streets to protest against raising the retirement age from 60 to 62, and in 2014, further reforms were met with a public backlash.
For many French people, the pension and social security system is seen as the cornerstone of the state's responsibility and relationship with its citizens. If implemented, the pension reform plan would hit the working classes particularly hard.
“This reform is the last straw,” says psychologist Bertille. “We are young and we have a long way to go before we retire. But if we agree to the government cutting our pension benefits, we will suffer later.” Geraldine, a health worker at Pitié-Salpêtrière Hospital, laments that she has worked for 38 years and has been particularly stressed during the pandemic and is already feeling exhausted. If this continues, she worries she will no longer be healthy enough to work.
Eric Schwab, a primary school teacher, holds up a banner every time he protests: “I refuse to waste my life trying to make a living.” When referring to the fact that France’s retirement age remains the lowest in Europe, Schwab is indignant: “They only compare us to other countries when it suits them… Why don’t they acknowledge the fact that Germans earn twice as much as French people, doing the same job?”
Lawmaker Sophia Chikirou of the far-left La France Insoumise (LFI) party said the pension reform would both reduce living standards and increase economic inequality. Most opponents argued that the reform would hit vulnerable people and the working poor hard, instead of aiming to tax large corporations or the super-rich more to balance the budget.
The French Prime Minister's activation of Article 49.3 also meant activating a vote of no confidence in the Government. On March 20, political parties and French public opinion held their breath waiting. If this vote failed, the cabinet of Prime Minister Elisabeth Borne would have to leave. As a result, the French Government narrowly passed, with the number of no-confidence votes reaching only 278, not enough compared to the required number of 287.
The matter has not yet ended as opposition politicians have strongly criticized the pension reform plan as “illegal” and called for continued protests and strikes nationwide.
HA PHUONG
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