Pension reform in France: face-off between the Government and the Opposition

Pension reform in France: face-off between the Government and the Opposition

Multidimension desk:
As planned in the program of President Macron during his second term, the pension reform project is presented on January 10, 2023. The government announced that the legal retirement age will be pushed to 64 years from 62 in order to be in balance with other European countries. For example, the standard retirement age in Germany is 65 years and 7 months. The main logic behind the reform is an aging population base with increased longevity which is surmounting pressure on pension funds which will dry up in future in absence of necessary reform.

The retirement age will decline by 3 months per year and will reach 63 years at the end of Emmanuel Macron’s five-year term and 64 years in 2030. According to Prime Minister Elisabeth Borne, in order to receive a full pension, one has to work for 43 years or 172 quarters of contributions from 2027.

However, for those who will not be able to contribute for 43 years, the full retirement age (without discount) remains at 67.

In addition, the minimum pension rate will be raised to 85% of the SMIC (minimum salary), an increase of 100€, as promised. This is equivalent to 1200€ of pension per month. As this reform is indexed to the SMIC, the pension will evolve at the same time as the SMIC. Both new and old pensioners will be able to benefit from this revaluation.

The different existing pension schemes will be closed and the government will set up a universal pension system, based on points. New recruits will be affiliated to the general pension scheme.

Those who started working early will be able to retire earlier. For example, people who started working before they were 16 will retire at 58, those who started working at 18 will retire at 60 and those who started working before 20 will retire at 62.

In addition, this reform will take into account arduous work, the carrying of heavy loads and others, which will benefit from a financing of leave for professional retraining.

Victims of an accident at work or an occupational disease will be able to retire due to disability at 60 years of age (compared to 62 years of age in the initial draft). Disabled workers will be able to retire from the age of 55.

This reform is very controversial because it would lead to a decrease in the number of jobs available, especially for young people, and to job insecurity for those who are already unemployed, and would reinforce gender inequalities. We know that women often have a chopped up career, so they will have to work longer to avail full retirement benefits. However, as women do not receive the same salary as men, their retirement pension will also be lower.

This will worsen the condition of the most precarious and those who started working early and whose life expectancy is lower than the rest of the population.

On January 19, the first national strike against this reform took place, followed by others during January, February and March. According to all the polls, this reform is particularly unpopular with almost 70% of the population saying they are against it.

On March 16, the Senate (upper house of the parliament) passed the reform with 193 votes for, 114 against, a bill amended as a result of a consensus between the right (the Republicans and the centrist) and the Macronist majority on several issues such as long careers, creation of an end-of-career contract for the recruitment of employees aged 60 or more (CDI sénior), premium for mothers in charge of family, although the main measure of raising the legal retirement age to 64 years remains in place.

Since the government is not sure of the number of votes in favor of the reform in the National Assembly (Lower house of the parliament), it has announced the use of Article 49.3 of the Constitution to pass the reform without going through the vote of the parliament members (MPs) on the same day.

The French people were outraged by this news, which goes against the principles of democracy. As a result, the strike of Thursday, March 16, which started as a peaceful strike, degenerated. The demonstrators invaded the streets of Paris, garbage cans were overturned and burned as well as many cars. The police tried to stop the demonstrators and more than 200 people were arrested. The unions have called for further mobilisations. The strikes against the reform, as well as the strikes of transport and garbage collectors continued the following days.

On March 17, two no confidence motions, the first of which is transpartisan tabled by the group Libertés, Indépendants, Outre-mer et Territoires (LIOT) and the second tabled by the Rassemblement national (party of Marine Le Pen), to make the government back down on its decision. Those will be studied on Monday, March 20 at 4 pm in the National Assembly. If none of the no confidence motions is voted by an absolute majority of the MPs, i.e. 287 votes, the text will be considered as definitively adopted without a vote.

The president of the Republicans, Eric Ciotti, announced that his party MPs will not vote on any of the no confidence motions,  but their votes are necessary to achieve a majority (at least thirty). According to the president of the RN, Jordan Bardella, the adoption of no confidence motion is “possible if the opposition, i.e. the NUPES (alliance of left parties and the ecologists, which includes the ‘Unsubmissive France’ of Jean-Luc Mélenchon) and the RN, come together”.

Meanwhile, on Saturday, March 18, another demonstration took place against the reform and tensions broke out in different French cities such as Nantes, Brest and Bordeaux. In Paris, certain areas were restricted to rallies and many metro stations were closed even though calls for demonstrations were made on social networks the day before.

Another national strike day is planned for Thursday 23 March.

 

Latest info:

After the rejection of both of the no confidence motions against the government, the pension reform was automatically adopted Monday evening.

The transpartisan no confidence motion (LIOT) received the support of 278 MPs, only nine less than the absolute majority (287 votes). At least 22 Republican MPs have voted in favour of the motion disobeying party’s decision.

The oppositions still have two tools to block the pension reform: the establishment of a shared initiative referendum (RIP) and an appeal to the Constitutional Council.

The adoption of the pension reform has triggered stronger protests all over France. There are many incidents of violence and arrests of demonstrators by the police.

President Emmanuel Macron will address the French population on Wednesday at 1:00 p.m. live on TF1 and France 2.

A Summary of the Immigration Bill 2023: Part 4

A Summary of the Immigration Bill 2023: Part 4

Multidimension desk:

Strengthening the expulsion process of convicted foreign nationals from French territory

The bill relaxes the almost absolute protection against expulsion enjoyed by certain convicted foreign nationals who have been residing in France for a long time or who have personal and family ties (for example, parent of a French or foreign child who entered France before the age of 13 ). These foreigners can now be expelled in case of terrorism, harm to the fundamental interests of the State or incitement to hatred or discrimination. In the future, they may also be expelled in the event of a final conviction for a crime or misdemeanor punishable by ten years or more in prison or five years in reiteration (for example for murder or rape). In the same way, the text facilitates the pronouncement by the judges of the additional sentence of banishment from French territory (crime or misdemeanor punishable by more than ten years in prison, serious violence against the police, etc.).

The text also reduces protections against decisions to impose an obligation to leave French territory (OQTF) in cases of serious threat to public order, even when the foreigners concerned have ties to France (for example, foreigners who have been legal residents for more than 20 years or foreigners who have been spouses of French citizens for more than three years).

Reform concerning foreign minors under 16 years of age

The ban on placing foreign minors under the age of 16 in an administrative detention center (CRA), including when they accompany adults. The government is implementing the case law of the European Court of Human Rights (ECHR) on the subject. On the other hand, the conditions of detention of foreign minors aged 16 to 18 have not changed. The latter can always be placed in an CRA when they are accompanied by an adult foreigner.

Measures to fight against irregular immigration

Other measures to fight against irregular immigration complete the text: aggravation of the repression against smugglers and “sleeping merchants”, authorization of the use of coercion for the taking of the fingerprints of asylum seekers at the border, possible visual inspection by the border police of private cars in the “border zone” (and no longer only of vehicles with more than nine seats)…

A Summary of the Immigration Bill 2023: Part 3

A Summary of the Immigration Bill 2023: Part 3

Multidimension desk:

Integration and residence permits

Foreign nationals applying for their first multi-year residence permit in France will be required to have minimum French language skills (to be set by decree). Until now, residence permits, which are generally valid for four years, are issued only if the applicant has completed a French language course as part of the republican integration contract conducted by the OFII. A minimum level of French is already required for obtaining a resident card (ten years) and to access the French nationality.

With the same objective of integration, employers will be able to offer their foreign employees the opportunity to take a training course in French as a foreign language (FLE). These hours of training will be considered as effective working time.

In addition, all foreigners applying for a residence permit must take a vow to respect the principles of the Republic: personal freedom, freedom of expression and conscience, gender equality, motto and symbols of the Republic… Today, for certain residence permits, this condition is not foreseen. If one of these principles is not respected, the prefectures may refuse, withdraw or not renew the residence permit.

The grounds for non-renewal or withdrawal of the residence permit are extended to include a serious threat to public order. In addition, an effective stay of six months per year in France will be required for the renewal of certain long permits.

What changes in France in March?

What changes in France in March?

Multidimension desk:

Navigo card holders who used the card between September and December 2022 will be able to request a refund of up to €37,61. This is compensation due to disruptions and punctuality problems that occurred in Ile-de-France transport networks during the year 2022. The refund request can be made from March 14 and a platform will be dedicated for this purpose.

Telephone advertisements, i.e. cold calling, will be prohibited from Monday to Friday before 8 a.m., between 1 p.m. and 2 p.m. and after 8 p.m. They will also be prohibited on weekends and public holidays.

On the night of March 26, we will switch to daylight saving time. The time will be put forward one hour since the sun will set later.

For vehicle owners, to offset inflation, petrol and diesel prices will not exceed €2 per liter at Total service stations.

Finally, once again for vehicle owners, it will be possible to request fuel allowance of €100. To benefit from it, you must have a taxable income less than or equal to €14,500 in the year of 2021 or use a vehicle for professional purposes regularly insured. The request is made on the Income Tax office’s (Impôts) website.
What are the changes coming in March 2023

A Summary of the Immigration Bill 2023: Part 2

A Summary of the Immigration Bill 2023: Part 2

Multidimension desk:

Proposed changes in the treatment of asylum demand

The bill provides for the creation of “Espaces France Asile”, to offer asylum seekers a simplified administrative path between the various competent administrations, namely the prefecture, the French Office for Immigration and Integration (OFII), the French Office for the Protection of Refugees and Stateless Persons (OFPRA). The government plans to deploy this system gradually, according to local needs and capacities, in order to rebalance the reception of asylum seekers in the territory.

The bill also proposes reforms to the organisation of the asylum appeal procedure before the National Court for the Right of Asylum (CNDA), in order to speed up the processing of appeals against refusals of protection by the OFPRA. The creation of the territorial chambers of the CNDA (which is today a single institution located at Montreuil) and hearing by a single judge are planned. The existing system of collegial court with three (3) persons will only be constituted if the complexity of a case justifies it.

Simplify appeal procedure against administrative decisions by the foreigners

Finally, the bill aims to simplify the procedure for cases involving the effective right of foreigners to challenge administrative decisions,  most of which are “obligation to leave French territory” (OQTF). This type of case is about 40% of the work of the Administrative Court (Tribunal Administratif). Already, the use of video hearings to adjudicate claims of foreigners held in administrative detention or in waiting areas has been increased to speed up the decision making process.