Macron’s Government Sets Road Map to Move Past Pension Debacle

French Prime Minister Elisabeth Borne outlined plans for labor and green industry overhauls in what will be a test of whether President Emmanuel Macron can pursue a reform agenda after a bruising debacle over raising the retirement age.

(Bloomberg) — French Prime Minister Elisabeth Borne outlined plans for labor and green industry overhauls in what will be a test of whether President Emmanuel Macron can pursue a reform agenda after a bruising debacle over raising the retirement age.

“This road map is a hand extended to all the people of goodwill,” Borne said in a speech Wednesday, calling on lawmakers, business leaders and unions to support government efforts.

Macron was reelected last year on a pledge to continue economic reforms that have paid dividends in growth and jobs since he first came to power in 2017, but he’s been facing widespread and sometimes violent protests and strikes.

The new law to raise the retirement age to 64 from 62 has left Macron deeply unpopular, and cemented divisions in parliament where he had already lost his majority. The reforms presented by Borne are an opportunity for a political reset. But that will require Macron convincing some opposition parties to back him. He is unable to stand for a third term when his current mandate ends in 2027.

Borne’s office said the government will introduce a “full employment” bill in early June to change French labor rules. She urged employers to raise salaries. Another bill, on green industry, will be presented by mid-May, she added. 

Borne didn’t go into detail on her measures, reflecting the fact that the government will have to work out specifics in tough negotiations with opposition parties.

Health, Immigration

Borne pledged measures to improve public health services as well as fighting illegal immigration, social benefit fraud and street crime, proposals that typically appeal to right-wing parties. 

Security at the border with Italy, which has been a key entry point for illegal migrants, will be strengthened with 150 additional police officers deployed next week, Borne said. She acknowledged a lack of support in parliament to pass a sensitive bill on immigration.

Macron and his government are trying to move past a wave of discontent, which has been fueled by the use of a constitutional provision to bypass a full parliament vote to pass the pension reform.

In recent days Macron has sought to convey a conciliatory tone, acknowledging people haven’t accepted the retirement age hike. He traveled outside Paris to talk about health care and education, but in all his recent trips he’s been met by demonstrations including people banging saucepans. Cabinet members have also been targeted by protests.

Power Cut

Education Minister Pap Ndiaye had to be evacuated from a train station in Paris among hostile protesters. Union members disrupted an event with Digital Transition Minister Jean-Noël Barrot in the city of Agen by cutting power, leaving participants in the dark. Two actors who were on stage during France’s most prestigious theater award ceremony blasted Culture Minister Rima Abdul Malak, who was in the audience. 

Unions have said they will protest again on May 1, a public holiday when labor organizations traditionally march in the streets. 

A poll of 1,000 adults carried out by Ifop on April 18-19 for Le Journal du Dimanche newspaper showed 76% don’t have confidence in Macron to improve the situation, including for health and education. The margin of error was around 2.5-2.8 percentage points.

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