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Friday, October 29, 2010

The French View on Pensions

Much of the international news from Europe has come because of protests that have been raging throughout Paris and Lyon for the last few weeks. Why are the French protesting? Because the French government is attempting to increase the retirement age from 60 to 62 in order to save the social retirement pension scheme a significant amount of money. Simply, the French pension system of social security is unsustainable. With an aging population, the system will go bankrupt. The opinion polls show this. So, if the system is unsustainable, and if the French know it, then why are they so keen to protest by the hundreds of thousands against the French government?

A few news articles I have found suggest that the French are revolting because they perceive that the French government decided to make the changes to the pension system without consulting the trade unions. Others have said the French are protesting because they want to protect future generations from a troubled future. (Todd, 2010) The French have no reason to believe that the protests will not work either. One article I found says withdrawing and giving in to strikes and protests is almost standard practice in France. (Bills, 2010) In short, the French are used to working less, getting long vacations, and having the government step in to cater to the citizenry’s wants after retirement age. Any change or threat to that system is seen as grotesque, un-French, and reprobate.

The French Senate has approved the change in the law, and the French government is in the final stages of approval for the new pension laws. It will be most interesting to see which side of this battle winks first, whether it’s the government or the strikers. My money is on the strikers backing down first.

Works Cited

Bills, P. (2010, October 29). De Gaulle knew why France is impossible to reform. Retrieved October 29, 2010, from New Zealand Herald: Link here

Todd, T. (2010, October 29). Pension protestors hold firm despite lower turnout. Retrieved October 29, 2010, from France24: Link here

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