France's government will not be pushed into watering down a major overhaul of its loss-making pension system despite the prospect of strong support for a nationwide strike next week, a minister said on Thursday.
Labour Minister Eric Woerth, architect of the reform which goes to parliament next week, said the government was ready to compromise on some details but would not abandon plans to raise the retirement age, a key aspect of its drive to slash its budget deficit.
Unions convening the September 7 strike — which they say will disrupt everything from public transport and schools to telecommunications — say a government offer to relax rules on people who perform arduous labour, hold multiple pensions or started work young is not enough.
They are calling on President Nicolas Sarkozy, whose popularity is near record lows ahead of elections in 2012, to ditch plans to raise the full retirement age to 67 from 65.
"We are facing a strike which is obviously extremely serious," Woerth told the economic journalists association. "But …that will not change the pension reform because if we introduce fundamental changes, there will be no pension reform."
The government unveiled plans in June to overhaul the pay-as-you-go pensions system and clean up state finances, warning that without major changes the system would run up annual deficits of 50 bln euros by 2020, versus an estimated debt of 32 bln euros this year.
The reform is an essential part of France's commitment to cuts its fiscal deficit to 3% of GDP by 2018 from an estimated 8% this year, which Sarkozy's government has made its top priority. Even the opposition Socialist party has recognised a fundamental reform of the pension system is needed.
NATIONAL INTEREST
The strike comes as Sarkozy's government, trailing the opposition Socialists in polls, tries to finalise unpopular deficit-cutting measures for next year's budget and faces criticism over a crime crackdown which has targeted Roma, arousing dissent even within the cabinet.
The government received a boost on Thursday when data showed unemployment — the chief concern of French voters — declined in the second quarter to 9.7%.
Woerth, a close ally of Sarkozy, has consistently ruled out altering key aspects of the bill, including plans to raise the minimum retirement age from 60 to 62 and the age for full retirement.
"We have to be firm because the national interest is at stake… but at the same time we must listen and keep the door open," said the minister. "We can probably be more flexible on arduous labour."
