Prior to his election in 2017, President Emmanuel Macron vowed to reform France’s pension system. He believes the current arrangement is unfair, complex and costly. According to OECD data, France’s retirement system is one of the most expensive in the world, costing the government 14% of the country’s GDP (gross domestic product).
Macron is now pushing for a single, points-based system. At the moment, there are 42 different pension plans that vary according to profession and region, meaning some workers are entitled to a full pension before the general minimum retirement age of 62. The new system would mean that pensioners that contributed the same amount would have equal rights.
Tomasz Michalski, professor of economics at HEC Paris business school, told CNBC Thursday that for every 10 euros that a worker earns in income, that person will get one point under the new system. “But how will these points be translated into benefits?,” Michalski wondered.
The full details of Macron’s reforms have not yet been officially put to Parliament. Thursday’s strike is pre-emptive action and does not have an end date, meaning it could last for some time. Philippe Martinez, leader of French trade union the CGT, told reporters that the strike will not end this evening.
Source Article from https://www.cnbc.com/2019/12/05/france-strike-public-workers-protest-against-macron-pension-reform.html
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