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Testing time for Sarkozy

September 12, 2010 11:52 pm | Updated 11:52 pm IST

President Sarkozy faces widespread opposition to his recent proposals to reform the French pension system. The controversies are centred on the idea of raising the retirement age from 60 to 62 by 2018, and the age of full pension entitlement from 65 to 67 by 2016. The size and nature of the protests on September 7 have shaken Mr. Sarkozy, whose ratings languish around 35 per cent. In terms of figures alone, the protests were a huge success, surpassing the trade unions' expectations. Some 2.5 million people participated in over 100 marches round the country; transport, schools, government offices, and the media were affected. Just as importantly, people of all ages and from all walks of life took part, including senior figures from prestigious professions such as medicine. François Chérèque, leader of the CFDT union, joined world-renowned French academics in signing an open letter that offers alternatives and calls for more extensive dialogue.

That the situation is serious is admitted on all sides. France, like other major European Union states, has an ageing population. Its state pension fund shows a projected deficit of about €30 billion for 2010. Mr. Sarkozy has mentioned concessions, particularly for those doing dangerous or very arduous work. Nevertheless, much wider issues are involved, and a fierce public debate is taking place around questions of gender equality, age discrimination, and fairness across generations. Older people in work face a decline in the growth of their pensions as the world economic crisis damages their future earnings. Younger people will face enormous uncertainties for several decades in the form of insecure and irregular employment. These factors will adversely affect future payments into the state pension fund. The poorer classes, furthermore, start work earlier than those in the well-paid professions. The so-called reforms would, in general, give them significantly longer working lives in more hazardous occupations. Mr. Sarkozy's many opponents point out that this would be unfair and guaranteed to increase inequalities. Martine Aubry, leader of the Socialist Party, says the reforms will be unjust and ineffective. Others make the point that the whole issue of pensions must be addressed not as a techno-financial matter but as one of national solidarity under concepts of a decent life for all. The French people have forcefully reconfirmed their commitment to long-held ideals of fairness and justice. President Sarkozy will be taking an enormous political risk by going against these ideals.

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