Daily Reports
Macron's Unemployment Insurance Reform Pushes Forward Amid Legislative Elections
Despite the impacts of the dissolution of the National Assembly by Emmanuel Macron, the unemployment insurance reform will continue as planned. Prime Minister Gabriel Attal confirmed on Thursday that the decree reforming unemployment compensation rights will be implemented by July 1, even amidst the early legislative campaign. The first round of voting is scheduled for June 30 and the second for July 7.
"We have presented a reform, a decree will be issued by July 1 for this reform which remains on parameters which were those put in place during the 2019 reform, and which are accompanied by better support for the unemployed towards their return to employment," stated Attal. He emphasized the goal of achieving full employment through this move. "At least it’s clear to us," he added, contrasting with the rival party's ambiguous stance on issues like pension reform.
The new reform mandates that individuals must work eight months out of the last 20 months to receive unemployment benefits, a change from the previous requirement of six months out of 24 months. Additionally, the duration of compensation will be reduced to 15 months for unemployed people under 57, compared to 18 months for those under 53.
However, this announcement has met some resistance. Unions have voiced concerns that the reform will increase precariousness among unemployed youth and seniors. Marylise Léon, the general secretary of the CFDT, solemnly requested the government not to publish the decree. Sophie Binet, CGT number 1, echoed these sentiments, emphasizing the need to protect employee rights.
Conversely, employers' organizations are in favor of the reform. The government argues that this reform aims to encourage people to return to work, reduce the debt of unemployment insurance, and better finance support for job seekers through France Travail, courtesy of the surpluses generated by Unédic.
On the economic front, the Minister of the Economy, Bruno Le Maire, hinted at a synchronized approach. While initially aligning with Macron's timeline, he adjusted his stance after learning about the Prime Minister’s announcement. Le Maire noted that post-June 30, the government would evaluate how to build a clear majority to support the decree and discuss its specifics with interested parties.
- The political climate in France is charged as the country braces for the dual events of early legislative elections and significant reforms in unemployment insurance. While the **National Assembly**'s dissolution disrupted several initiatives, essential policies like the unemployment insurance decree remain steadfast in the government's agenda.
- The Council of State is currently examining the draft decree that will tighten access to unemployment compensation. This decree signifies a policy continuity from the 2019 reform but introduces stricter work requirements and reduced compensation periods. Discussions have polarized public opinion, pitting union concerns about increased precariousness against employer endorsements for economic revitalization.
- President Emmanuel Macron has tried to strike a balance, asserting the necessity of the reform while remaining open to modifying its specifics after the legislative elections. The ultimate goal, shared by government officials, is to balance reducing unemployment insurance debt and providing substantial support for job seekers seemingly through prudent economic measures.
