Macron's Party Scraps Jobless Reform Before Election Finale

By IndraStra Global News Team

Cover Image Attribute: The file photo of President Emmanuel Macron / Source: AFP
Cover Image Attribute: The file photo of President Emmanuel Macron / Source: AFP

Following the first round of France's legislative elections, Prime Minister Gabriel Attal has decided to suspend the planned overhaul of the country's unemployment benefits system. The right-wing National Rally (Rassemblement National, RN) party and its allies secured 33% of the vote, while the left-wing New Popular Front (Nouveau Front populaire, NFP) obtained 28%, and President Emmanuel Macron's Ensemble coalition (Ensemble pour la République), came in third with just under 21%. Despite criticism from the leading parties, Attal has reaffirmed his commitment to one of his key goals since taking office in January.

The decree was not formalized on Monday as initially expected, despite Prime Minister Gabriel Attal's previous assertion on June 13 that a decree would be issued by July 1 to build upon the 2019 reform framework. Attal made this statement shortly after the European elections, where President Macron's Renaissance party suffered a significant defeat to the RN, leading to a snap French election. Attal emphasized that the reform primarily aims to provide better support for the unemployed to aid their return to work.

The government's proposed reform aims to limit unemployment benefits to a maximum of 15 months for those under 57, down from the current 18 months, and to tighten eligibility criteria, requiring individuals to have worked at least eight months in the last 20 months, compared to the current requirement of six months in the last 24 months. The leftist New Popular Front has criticized the reform as "cruel" and vowed to appeal it, while Jordan Bardella of the RN expressed his dissatisfaction, stating frustration over repeated demands on the same group of people. The Republican party is divided on the issue, and powerful trade unions strongly oppose the reform.

Several economic experts emphasize the need to increase France's employment numbers to drive growth, a key policy of President Macron's administration. Since taking office in 2017, Macron has implemented various changes to the unemployment system, increasing worker numbers. However, French finances are currently strained, particularly with a growing budget deficit, which reached 5.5% in 2023, surpassing the target of 4.9%.

Finance Minister Bruno Le Maire, speaking to France Inter on Monday, asserted that France must pursue full employment and continue with the jobless benefit reform to remain a leading economic power and re-industrialize. He stated that he would not alter his beliefs simply to persuade others. Despite the economic risks, pausing the reform could be a strategy for the government to avoid early conflicts with political opponents.

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IndraStra Global: Macron's Party Scraps Jobless Reform Before Election Finale
Macron's Party Scraps Jobless Reform Before Election Finale
By IndraStra Global News Team
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