In France, Labor Day is celebrated on May 1. It is traditionally a day of parades led by labor unions; however, this year, in Paris, it was filled with tear gas as protestors raged against the government’s decision to raise the retirement age.
On May 1, riots broke out across France. About 112,000 people took to the streets in Paris. Rioters clashed with police, and a building caught fire. Tear gas choked the Place de la Nation. Ninety people were detained, and 19 policemen were injured. Country-wide, 291 were detained and 90 policemen were injured. The riots came after one of France’s biggest unions, CGT, called for protests of historic proportions over raising the retirement age from 62 to 64, as well as some other changes to France’s pension system. In France, the government-funded retirement pension is used to ensure a minimum standard of living for elderly residents. It was established, along with universal health care, as part of France’s social system after World War II. However, like many aging societies, this social safety net has become strained. The Labor Minister declared that without change, the pension deficit would reach $13B annually by 2027. (The state pension in France totals roughly 14% of GDP, more than most countries.) The business-minded president, Emmanuel Macron, saw that change was essential to keeping the system afloat.
Much of the popular angst lies in how Macron executed the change. He used France’s Constitutional Council, which is similar to the US Supreme Court, to approve the measure, bypassing parliament. Hence the representatives of the people never had a say in the matter. (That Macron could even do such a thing suggests the France’s system of checks and balances needs some tightening.)
Starting in September, retirees will have to work an additional three months before collecting a retirement check. Further deferrals are scheduled until the retirement age reaches 64 in 2030. While populist anger may fuel opposition candidates in next year’s parliamentary election, the presidential election in France isn’t until 2027: Macro is betting that people will have largely adjusted by then.
Sourcing:
Joseph Ataman, Saskya Vandoorne, Oliver Briscoe, “May Day Protest Erupts in Paris as France Seethes About a Hike in the Retirement Age, CNN, 1 May 2023; see also https://www.cnn.com/2023/05/01/europe/france-pension-protests-explainer-intl/index.html
Photo: Lewis Jolley, AP
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