In Paris, protesters brought the French capital to a near standstill on Friday. They’re furious over President Emmanuel Macron’s pension reform program, and they’re promising that larger protests will follow.
But contrary to the view of some American conservatives, who see these protest movements as a Tea Party-style revolt, Macron is in the right here. What’s at stake is the fiscal stability of the Fifth Republic and the right of taxpayers to be treated fairly by their government.
When it comes to French pensions, that’s just not the case at present.
As the Atlantic Council’s Benjamin Haddad explained to me, under Macron’s reforms, “France will keep its public pension system where the current labor force cover the pensions of retired people but much needs to be done to make the system fairer, sustainable and more efficient, especially in a country with high life expectancy and an aging population. We have currently 42 different systems, different model between workers from the private sector and government, etc.”
Haddad, who was the Macron campaign representative in Washington, D.C., added that the president “will need to act decisively once the debate is over.”
The basic problem is that even as the French live longer, many remain able to retire at early ages. This is breaking the budget. It’s also deeply unfair to self-employed workers and those in private pension schemes. They pay their taxes and work long careers even as their fellow citizens retire early. Macron’s reform would alter this status quo by unifying state pension plans under a central remit. Macron would also save money in pension programs by requiring most workers to remain employed until their early 60s.
That has some who are currently able to retire in their early 50s rather upset. Those protesting on Friday, for example, include transport workers who are able to retire at or around age 55. But they’ll be joined by others from different professions next week.
Macron must not back down. Instead, like Margaret Thatcher against Arthur Scargill, or Napoleon at Austerlitz, Macron must seize and hold the initiative. He must use his vast parliamentary majority to push through these reforms at all costs.
While the next French presidential election won’t be held until 2022, Macron’s reelection prospects will rest in large part on the state of the economy and business confidence. That means taking on the status quo and liberating the French economy to a more efficient standing. But these protesters must be defeated. Absent that, France will stagnate.
