new day of nationwide strikes in France maintains pressure on PM

Yesterday’s strikes in France were smaller that those on the 18th and immediately after Lecornu’s election. However, 24,000 people marched in Paris alone, with the Eiffel Tower shutting down in support. The CGT Eiffel Tower union stated that:

Following today’s national inter-union call, a general assembly of Eiffel Tower employees was held this morning. A large majority of workers voted in favor of the strike.

The unions have demanded the Lecornu scrap Macron’s changes to the pension system. In 2023, the president pushed the modifications through without a parliamentary vote. They raised the retirement age from 62 to 64, and removed several privileges previously held by the workers.

More than a quarter of all teaching personnel in France joined Thursday’s industrial action. FSU-SNUipp education union leader Aurélie Gagnier stated that:

the workers we meet support the need for more tax justice and social justice and recognise the need for a budget that addresses schools’ needs.

The strikes in France maintained pressure on the new PM, who has not yet appointed ministers or revealed his budget plan. Lecornu has stated that he will abandon the unpopular idea of cutting two public holidays. Sources close to the PM suggested that he is considering tax exemptions and lower social charges on overtime work. Other potential changes might include a reduction in income tax for dual-income couples who earn just over minimum wage.

No tax on the ultra-rich

Last week, however, the PM told Le Parisien that he didn’t favour the idea of a tax on the ultra-rich – the so-called ‘Zuchman tax’. Named for economist Gabriel Zuchman, the tax would consist of a 2% wealth tax on the country’s richest 0.01%.

Lecornu cited the fact that the tax would also apply to business assets as the reason for his distaste. The PM stated that:

There is political and societal demand for greater tax justice, particularly in order to restore our public finances. We can’t dismiss this debate out of hand. But is the Zucman tax the right answer? The only answer? Personally, I do not believe so.

The Zuchman tax was a key demand of the French parliament’s left wing. Socialist leader Olivier Faure warned that:

If nothing changes, the outcome is already known … This government will fall.

France is predicted to suffer a budget deficit of 5.4% of it’s GDP this year. Lecornu has stated that he’s aiming for a 4.7% budget deficit next year, barely changed from Bayrou’s 4.8% target.

Today, Lecornu will hold a series of talks with opposition leaders. They expect him to lay out his full budget plan ahead of a coming parliamentary vote. Their support – or lack thereof – could make or break the new PM’s nascent leadership of the increasingly economically and politically fraught European nation.

Featured image via the Canary