Macron pushes pension reform past Parliament – and risks political crisis

Paris The dispute over the pension reform has brought dramatic hours to French politicians. In the afternoon, President Emmanuel Macron finally decided to enact the law using a constitutional tweak and without the vote of MPs. But the struggle for reform continues.

Macron and his followers discussed whether he should dare to vote on his controversial pension reform until shortly before the crucial debate began in the National Assembly. He wasn’t sure of a majority.

The reform, which, among other things, provides for a gradual increase in the statutory retirement age to 64, is considered the most important domestic policy project in Macron’s second term. With the decision to push through the law on the special rights of the government enshrined in Article 49.3 of the constitution, he is taking a very big risk.

The opposition can still overthrow the text with a vote of no confidence in his government – ​​a possible scenario under which Macron has previously threatened to dissolve parliament and call new elections. Several opposition parties have already announced that they will request a vote of no confidence.

The head of state also runs the risk of further heating up the already tense mood in France by booting out the National Assembly with such a far-reaching social reform.

Trade unions immediately announce new strikes and protests

In recent days, the President has led his compatriots to believe that he is seeking a parliamentary vote and not the Article 49.3 procedure. The trade unions immediately disputed the legality of the law and announced that they would continue the massive strikes and protests.

Amid whistles and boos from the opposition, Macron’s Prime Minister Élisabeth Borne said in the National Assembly that there was “uncertainty” of few votes in the quest for a majority at the end. The law emerged as a compromise from “close consultations” with trade unions, employer representatives and parliament. The government does not want to allow this work to collapse.

According to French media reports, Macron himself justified his actions at a special meeting of his cabinet on Thursday by saying that abandoning the pension reform would entail “too great financial and economic risks”. The government relies on the calculations of an advisory body of experts, which had warned of a growing deficit in the pension fund in the billions given the aging population.

Elizabeth Borne

The French Prime Minister defended the government’s decision in Parliament.

(Photo: Reuters)

After weeks of discussions, the mediation committee of the two chambers of parliament in Paris agreed on a common legal text for a final vote on Wednesday. The reform then passed the Senate on Thursday morning – the approval of the upper house had been expected.

The National Assembly has been a shaky candidate since the beginning of the pension debate: In the more important of the two chambers, Macron’s government no longer has its own majority since the defeat of his center alliance in the parliamentary elections last summer. The President had counted on the conservative-bourgeois Republicans supporting his reform plans. Apparently, however, he was unable to convince a sufficient number of Republican MPs of his reform.

Constitution gives government special rights

Shortly before 3 p.m., the scheduled start of the final debate in the National Assembly, Macron then pulled the ripcord. Article 49.3 of the Constitution allows the French government, under certain conditions, to legislate without parliamentary consent. However, after a constitutional reform in 2008, the government can only use this move for budget laws – and once a year for a different political project.

Macron had put off pension reform for a long time. He broke off an attempt during his first term in office at the beginning of the corona pandemic, and even then there were already massive protests against his plans. After his re-election in spring 2022, Macron initially waited and then unsuccessfully sought compromise lines with unions and opposition parties.

Finally, in his New Year’s address, he declared: “This year will indeed be the year of pension reform that will ensure the balance of our system for decades to come.” His government then presented the details of the law in mid-January.

strike in France

The plans of the head of state, who wants to make the pension system future-proof, have repeatedly led to mass protests and strikes in recent weeks.

(Photo: IMAGO/NurPhoto)

According to the reform law, from 2030 the French should not retire until the age of 64. To this end, the statutory retirement age is to be gradually raised from the current 62 years from September 2023. The government wants to abolish generous early retirement schemes for certain occupational groups.

However, particularly long-term employment histories should be taken into account: Anyone who has at least 43 years of contributions can, under certain circumstances, retire earlier without deductions. In addition, the minimum pension is to be increased by EUR 100 to around EUR 1,200 per month.

Opposition to Macron could grow

The opposition to the President’s plans is great. In surveys, a clear majority of French people are against retiring later. More than a million people took to the streets in protest marches across France.

Strikes have paralyzed the country since January: long-distance trains have repeatedly failed, subways have run irregularly, and schools and kindergartens have been closed for days. Truck drivers blocked roads. Fuel was running out at some gas stations because refinery workers stopped work. In Paris, overflowing garbage cans, mountains of cardboard boxes and black sacks full of rubbish are currently dominating the image of the capital because garbage collection is on hold.

While Macron held an emergency meeting with representatives of his government and his parliamentary group on Thursday, the unions mobilized in front of the Palais Bourbon, the seat of the National Assembly not far from the right bank of the Seine. “We are here because we believe that the people’s representatives must respect the opinion of the people,” said the head of the left-wing hard-liner CGT, Philippe Martinez.

The protests and strikes would continue regardless of the political decision. Laurent Berger, who heads the more moderate CFDT union, also made it clear: “There will be new mobilizations.”

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