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As France grapples with a notable public deficit, which stands at 5.5% of GDP in 2023, well above the boundary advocated by Economy Minister Bruno Le Maire, austerity steps are being considered to shrink public spending. Amidst President Emmanuel Macron’s effort on the side of Brazil to try to give a boost to the national economy, Prime Minister Gabriel Attal is tackling unemployment insurance reform, a considerable financial strain on the country. Attal, who signalled this move upon assuming office, is hastened by troubling economic indicators released by INSEE. He is slated for a vital appearance on TF1’s 8 p.m. news on Wednesday, March 27, from which the unemployed anticipate unwelcome news.
The government seminar on labour, led by Attal, is anticipated to introduce tough measures ahead of the televised announcement. Rumoured proposals include further lowering unemployment benefit duration, already cut from 24 to 18 months since February 2023, and modifying senior compensation rules. Further, measures to stimulate employment and potentially introduce new work models like the 4-day week, akin to experiments in Germany, the UK, and the USA, are under consideration.
Nevertheless, trade unions and left-wing factions criticize these reforms, fearing they prioritize cost-saving over job creation and push the unemployed into accepting more perilous positions. Union leaders reason that the effectiveness of such austerity measures on improving the job market remains unproven, instead recommending they may lead to a decline in job quality and security.
Sophie Binet of the CGT associated the reform with harmful medical practices, suggesting it might worsen rather than alleviate employment issues. Economist Raul Sompognaro warned that forcing people into jobs they wouldn’t normally accept could lead to a mismatch of skills and job roles, potentially driving qualified individuals into lower-skilled or gig economy positions.
Critics from the left, like Marie Toussaint, accuse the administration of targeting the most vulnerable in its cost-cutting efforts, while François Bayrou of the Modem party challenges the notion that the unemployed are to blame for unemployment. Contrarily, the right and far-right, represented by Éric Ciotti and Marion Maréchal respectively, support the reform, arguing it is essential to dismantle a social model they believe incentivizes dependency on state aid over employment.
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