France renews talks to end pension reform gridlock

The French government began a new round of talks with unions to try and end gridlock over its planned pension reform ahead of the holidays.

About two weeks of strikes and three nationwide marches have gummed up the country's public transportation system, leaving millions to work out alternative ways of getting around. Prime Minister Edouard Philippe has reiterated that his government has no intention of backing down.

"The objective is very simple: to guarantee that accounts will be balanced in 2027," Mr. Philippe said Tuesday at the National Assembly. "If our social partners come up with a better proposition that guarantees equilibrium by then, we'll take it."

While President Emmanuel Macron's government has barreled through reforms of tax and labor laws, the current stalemate shows how deeply the French are wedded to their pension system. Reforming it is the crown jewel of Mr. Macron's effort to modernize the country by merging 42 separate pension regimes into one universal points-based system and offering incentives to push back the age when workers retire to 64 from 62 in 2027.

The prime minister has invited unions and employer organizations for talks Wednesday, followed by a joint meeting Thursday. They will be joined by the new pension reform chief, Laurent Pietraszewski, a former lawmaker from Mr. Macron's party. Mr. Pietraszewski was appointed Tuesday night, replacing Jean-Paul Delevoye, who resigned Monday for failing to declare multiple paid and unpaid positions he held in organizations including think tanks and trade groups.

France's third round of demonstrations and protest marches Tuesday drew 615,000 people across the country, according to Interior Ministry figures, while the far-left CGT union, which has led the anti-reform movement counted 1.8 million, according to published reports.

"This doesn't call into question the government's determination to do this reform, which is a reform for all of the French," Jean-Baptiste Djebbari, junior minister for transportation, said Wednesday in an interview on CNews television. "There were fewer people in the streets yesterday than on Dec. 5."

The first march on Dec. 5, drew more than 800,000 people, the biggest turnout since Mr. Macron took office in May 2017. The second march on Dec. 10 had fewer than half that, according to the Interior Ministry.

Mr. Macron's administration has said it could agree to roll back some aspects of the plan, but it promised to end the special status of many public service workers, from metro drivers to Paris Opera dancers.

CFDT head Laurent Berger said Tuesday that his union, the largest of the country and seen as the most likely to embrace a reform, was ready to continue strikes in the new year if the government didn't scrap plans to raise the full retirement age to 64. He reiterated that he supports a universal points-based pension system.

"If we are not heard, we will be back again in January," Mr. Berger said.

The strikes, which started Dec. 5, are creating havoc for workers commuting on public transportation — mostly in and around Paris — and leading to hundreds of miles of traffic jams around the French capital.

The government has called for a truce over the Christmas period. Mr. Berger concurred, saying blocking people during the festivities would be "bad for our image."

Public opinion in France is divided. Mr. Macron's approval rating climbed 2 points to 30% while the prime minister's rating is up 4 points to 30%, according to an Elabe poll for Les Echos and Radio Classique on Monday.

And that's while 54% of people either support the strikes or are sympathetic to them, according to an Ifop poll published Sunday.

The French also support some aspects of the reforms, the Ifop survey showed. About two-thirds agree with phasing out the special retirement plans, while only 37% support pushing back the age for retirement with full pension to 64.

France's Insee statistics agency said the protests would have a limited impact on economic growth, especially if unions suspend their action during the holiday season.

Yet the strikes are fraying the nerves of commuters having to squeeze into the few trains and buses still running or sitting in miles of traffic jams.

"The time has come to find a way out because the consequences are serious," French Finance Minister Bruno Le Maire said on RMC radio Monday. "This conflict is weighing on the morale of the French people."