French Strikers Threaten Energy Supplies

For the past several days, French strikers have disrupted just about everything they could in protest against the pensions policy of President Nicolas Sarkozy. Their effectiveness is starting to show as about 1,500 of the nation's 12,000 gas stations are dry or are about to close. Workers at 12 oil refineries are on strike, and truckers have blocked roads to prevent fuel from arriving. Panic buying sent prices up 50% since last week. Their complaint? The French government is raising the minimum retirement age to 62 from 60 for minimum benefits and to 67 from 65 for the full payout.

In the National Assembly, the bill making this change has already passed. The French Senate is likely to act on Wednesday, in all likelihood passing it. To may outsiders, the French are acting like spoiled brats. After all, they are merely being asked to accept retirement ages with which Americans currently live.

However, there are two issues that the strikers point to that make the basis of a good counter-argument. First, France has virtually no history of private pensions and retirement plans. French Economist Xavier Timbeau told the BBC, "There has always been more trust in the state than in financial markets, and that is even more the case after the recent crisis. To Frenchmen the state is supposed to be the fair distributor of wealth. When they tamper with that, people get upset, which perhaps explains the scale of the recent demonstrations." About 2.5 million took to the streets yesterday.

Second, there is a simple matter of fairness. Thierry Dedieu of the Confédération française démocratique du travail (CFDT) union, has stated, "Is it acceptable that some will contribute to the system for 45 years while others will have contributed only 35 or 40 years? People see the unfairness in the system. We know there is need for reform. But we think this is a debate for a presidential election. It can't be something we debate in the space of three months." It is hard to argue that someone must pay for 45 years to get what another who paid in for only 35 years receives.

The worst hit are the young, who suffer staggering unemployment in France. So by the time they really start earning, they are older, and they are being told they must work more years for perhaps less return. And as many will point out, no one can guarantee the existence of pensions at all 45 years from now.

The French are better at political street theatre than most, but the issues they face in paying for their elderly, providing jobs for their young and still maintaining a "fair" society are not unique. Most of the developed world needs to have that debate.

What is troubling in the case of France is the danger this poses to the government. Industry Minister Christian Estrosi told French radio earlier today, "The government is in control. There will be no blockade for companies, no blockade for transport and no blockade for road users." Long time political observers will note that ministers never have to say the government is in control except in circumstances where it may not be.

Could it be time for a Sixth Republic?

© Copyright 2010 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.

Kensington Review Home