FRANCE - ECONOMIC POLICY
Sarkozy announces reform package
Thursday, November 29, 2007
In a special televised interview, French President Nicolas Sarkozy announced new measures designed to boost quality of life as he called on French people to work more in order to earn more.
Thursday, November 29, 2007
Sarkozy vows reform, no handouts, to lift economy
By Reuters
PARIS, Nov 29 (Reuters) - President Nicolas Sarkozy said on
Thursday he was intent on reform to boost France's economy and
raise living standards, but said there was no money left in
state coffers for huge cash handouts.
Thursday he was intent on reform to boost France's economy and
raise living standards, but said there was no money left in
state coffers for huge cash handouts.
In a wide-ranging television interview Sarkozy, sought to
address voters' top concern, purchasing power, by saying firms
could in future be freer to circumvent the 35-hour limit on the
working week as long as they struck a deal on pay increases.
address voters' top concern, purchasing power, by saying firms
could in future be freer to circumvent the 35-hour limit on the
working week as long as they struck a deal on pay increases.
A wave of strikes this month in protest at his reforms have
dented Sarkozy's popularity and consumer confidence, and judges
and legal officials were the latest group to demonstrate against
his changes.
dented Sarkozy's popularity and consumer confidence, and judges
and legal officials were the latest group to demonstrate against
his changes.
In the interview, Sarkozy said employees should be free to
chose cash rather than time off for overtime and be given more
scope to work voluntarily, on double pay, on Sundays.
chose cash rather than time off for overtime and be given more
scope to work voluntarily, on double pay, on Sundays.
Sarkozy, who has also faced unrest in Paris suburbs this
week, vowed to give a helping hand to those in tough
neighbourhoods who wanted to improve their lot.
week, vowed to give a helping hand to those in tough
neighbourhoods who wanted to improve their lot.
He said he would stick to his reforms but not throw money at
every problem.
every problem.
"The French people are not expecting me to hand out presents
like Father Christmas as they know perfectly well that there's
no money in the coffers," said Sarkozy, whose popularity has
fallen below 50 percent for the first time since elected in May.
like Father Christmas as they know perfectly well that there's
no money in the coffers," said Sarkozy, whose popularity has
fallen below 50 percent for the first time since elected in May.
"There is already a lot of deficit and too much debt. The
only way to help purchasing power is to create the conditions
for growth and to rehabilitate work."
only way to help purchasing power is to create the conditions
for growth and to rehabilitate work."
FIGHTING ON ALL FRONTS
Data on Thursday put household confidence at the lowest
level in more than a year over concerns that the cost of living
is being driven up by high oil, food and accommodation prices.
level in more than a year over concerns that the cost of living
is being driven up by high oil, food and accommodation prices.
Falling household morale could hit consumer spending, the
key driver of growth in the euro zone's second biggest economy
and Sarkozy said the best way to tackle concerns over falling
purchasing power was allow people to work more and earn more.
"I am fighting on all fronts to reform France...so we will
be more competitive, rehabilitate work and restore its value,
have more growth and so fewer unemployed people," he said in the
45-minute interview.
key driver of growth in the euro zone's second biggest economy
and Sarkozy said the best way to tackle concerns over falling
purchasing power was allow people to work more and earn more.
"I am fighting on all fronts to reform France...so we will
be more competitive, rehabilitate work and restore its value,
have more growth and so fewer unemployed people," he said in the
45-minute interview.
Having delivered huge tax cuts over the summer, Sarkozy had
little room to unveil new spending plans, particularly since
Paris is already under pressure from the European Commission for
slipping in its plan to balance the state budget.
little room to unveil new spending plans, particularly since
Paris is already under pressure from the European Commission for
slipping in its plan to balance the state budget.
With no more money to sweeten his planned reforms, Sarkozy
acknowledged earlier on Thursday there would be opposition to
his changes -- as highlighted by protests in recent weeks by
transport and electricity workers, civil servants and students.
acknowledged earlier on Thursday there would be opposition to
his changes -- as highlighted by protests in recent weeks by
transport and electricity workers, civil servants and students.
While those protests were peaceful, Sarkozy repeated a
pledge that rioters who this week fired on police in poor Paris
suburbs would be caught and brought before the courts.
pledge that rioters who this week fired on police in poor Paris
suburbs would be caught and brought before the courts.
Earlier, he told a large audience of police he would crack
down on the "thugocracy" he blamed for clashes between rioters
and police in Paris suburbs this week.
down on the "thugocracy" he blamed for clashes between rioters
and police in Paris suburbs this week.
The unrest followed the deaths of two teenagers in a
collision with a police car at the weekend.
collision with a police car at the weekend.
Many young people say they feel alienated and discriminated
against in the Paris suburbs, which suffer from poor housing,
high unemployment and crime.
against in the Paris suburbs, which suffer from poor housing,
high unemployment and crime.
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