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The reform of pensions and that of unemployment insurance coverage, wished by the federal government, will upset our nation, and never solely the world of labor, in accordance with the economist Michaël Zemmour. “It is not simply altering parameters, it is calling into query our social pact. »
“The pension reform is there to compensate for company tax cuts”
However is not the financing of pensions affected by a hazard of skidding?
Retirement expenditure has stabilized and is even on a downward pattern, whereas the variety of retirees shall be higher sooner or later. We’re not within the 90s when it was mandatory to stop the explosion of pension expenditure. Right this moment, they’re underneath management and much more so, as a result of retirees will contact it for much less time…
Extending working time will subsequently not be used to finance pensions?
I hear so much that the pension reform is there to finance schooling, well being, the vitality transition… This reform is a public finance measure. The federal government’s technique is to decrease taxes, particularly manufacturing taxes on firms, as in 2020/21. This drop will nonetheless be very important in 2023/24: eight billion euros per yr. Within the 2023 draft funds, it’s clearly written that the pension reform is there to compensate for company tax cuts!
So is it “all the time much less retirement”?
Till 2015, regardless of the reforms, as careers had been higher, the extent of pensions elevated and the period of retirement lengthened. Since then, the reforms, such because the 42 annuities to learn from a full pension, haven’t but produced all their results. For the 1973 era, 43 will already be wanted. Even with out additional reform, the common retirement age will subsequently proceed to extend. Whereas the system is deteriorating, a brand new reform will subsequently speed up the decline in advantages. This can be a historic break!
Desirous to make the French work longer comes up towards the phenomenon of people who find themselves already retiring whereas now not working…
When the Ministry of the Financial system quantifies the brand new pension reform, for every euro of pension not paid because of the brand new retirement age, it will likely be essential to spend between zero.33 and zero.50 euro in further social advantages for unemployment, sickness, incapacity … This may worsen the social state of affairs of these affected as we now have already seen when the age has elevated from 60 to 62 years. By pushing again to 65, this dangers being much more flagrant, producing a social catastrophe. The labor market and the way in which of working in France are in no way tailored to the postponement of the retirement age, even already at 62! As well as, the generations approaching retirement are usually drained folks, wishing to depart as quickly as doable after a a lot much less safe and steady profession than earlier than with the crises of 1993, 2008 and the Covid interval.
Via this reform, passes the concept retirees can be a burden and never a utility for our society…
Retirement is a political situation, a societal alternative. Our pensions have improved since 1945, each by way of the extent of pensions and their period. Because the 1980s, a retirement way of life has been invented: free time, tourism, neighborhood life, companies for family members, youngsters, grandchildren and dependents… Right this moment, what mannequin of retirement do we wish? Both shorten retirement, believing that you would be able to work longer, retirement solely occurring when you possibly can now not achieve this. Both select, with the property, to finance pensions as we did ten years in the past in order that retirees can dwell usually with associated revenue, with out being too drained. Shifting the retirement age isn’t just altering a parameter, it’s also calling into query our social pact. An actual, delicate alternative of mannequin of society!
“The federal government desires to make unemployment insurance coverage an instrument that places strain
on the unemployed
Relating to the reform of unemployment insurance coverage, it appears regular to assist job seekers extra when the market is weak and vice versa when many positions are to be crammed, proper?
This reform stems from a change of imaginative and prescient on unemployment insurance coverage. Traditionally, it’s the proper to keep up a part of the wage when one is involuntarily disadvantaged of employment.
This lets you be socially safe and to search for a job that matches your qualifications and expertise. The logic of the federal government is to alter this concept of rights and safety to make it an instrument of social and employment insurance policies used to place roughly sturdy strain on unemployed folks. That is one other imaginative and prescient of unemployment insurance coverage… The effectiveness will not be apparent, placing strain on the extent of wages, the unemployed folks being then extra inclined to just accept a much less effectively paid job however it’s unlikely that this impacts the extent of employment.
Ultimately, if these two reforms are adopted, the social contract of the French with their rulers seems to be effectively broken…
These are important structural developments. The French social mannequin is previous, nonetheless retaining many achievements.
Its transformation might be described as neoliberal: social safety is seen much less without any consideration that cushions the shocks of life, which makes you are feeling safe, however extra seen as a instrument geared toward pushing folks to evolve to labor market expectations. That is a reasonably large transformation!
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