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tv   Inside Story  Al Jazeera  February 7, 2023 8:30pm-9:01pm AST

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now back into this cycle of big thunderstorms, particularly in south africa. ah, debating the issues of the day, the 5 largest polluters of the world are in india, jump into the stream. they made their money on pole. they made their money on field, convincing those folks. no, we need to go. green is very, very difficult, giving all of voice. we chose to live because we wanted to escape war and violence . when you humanize this narrative, you allow people to really understand the reality in breakdown misconceptions. the street on al jazeera nationwide strikes in france of a pension reforms that's us, parliament debates, whether to raise the retirement age, president mcdonald, his government, say the choices were form, or bankruptcy, but other proposals unfair to workers. this is inside story.
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ah, hello, welcome to the program. i'm adrian said again a day off to francis national assembly started to debate and owe the whole of pensions. workers walked off the job and took to the streets and nationwide strikes . it's the 3rd time such major demonstrations have been held this year. the reforms were at the heart of president mariama, crohn's reelection campaign last year, but a proving deeply unpopular across the country. they include raising the retirement age from 62 to 64 years, and increasing the number of years the people must make contributions to receive a full state pension. union leaders say that all this is dangerous for democracy, but belongs party argues that it's balancing the system of the current age is
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dragging on public finances. we'll get to our panel shortly. but 1st, i'll just serious hurry. faucet reports from paris for a 3rd week now a major national strike affecting all sorts of sectors in france, the transport network teachers are out on strike postal workers. and for the 1st time, farmers unions are also taking part in this national action. there are demonstrations in the works here in paris and in cities across the country. in the last 2 occasions, more than a 1000000 people took to the streets, opposed, of course, to president macros plans to raise the retirement age. from 62 to 64, there is, i think, a consensus in this country that something needs to be done to reform the pension system. president macros. finance minister says they'll be a 14000000000 euro hole in a national budget by 2030. if nothing is done to fix the problem, but there is real differences to what exactly to do about the opposition parties in the national assembly or arguing against it. they're trying to get it scrapped or
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sent to a referendum. neither of those options are looking likely, but they're also proposing some $20000.00 amendment to the legislation during the course of this next month of debate trying to slow it, trying to make their arguments as public as possible against it for president macro . this is a real issue of his identity as a reformer. he wants to leave a legacy as to having a tackled this extremely difficult problem. and if he needs to, there is an option open to, to try to force it through no matter what the national assembly says. for others. though this is a real issue of national identity for france because people here really do value life overwork, they value the idea of having worked all their lives and then retiring with dignity and with time to enjoy that retirement. so this is a major issue, really disrupting life here in this country. harry force for inside story in paris . ah. so let's pray at our guests for today's discussion from paris were joined by remi board job. he's associate fellow at the
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french institute of international and strategic affairs. paul taylor is contributing editor at politico. he joins us from saint remy, the province and in london. we've got rainbow murray, who's professor of politics at queen mary university london. good to have all 3 of you welcome to the program. at will start with you. been remy for the last decade electorates in most e u. countries of accepted a later retirement age, largely without protest. why is france different? do the unions and the public have the appetite to think for a long fight over this issue? well pension reform. so it's really something in france and debate. it's one of the last kinds of reforms and political discussions that really raised so much interest and passion. there's already been
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a series of reforms about every 10 years in 109-323-2014 this year again. so there's a repetitive aspect to, to, to these reforms. the discussion is always a bit the same. and a lot of this reform is about accelerating the previous reform and also are raising the return retirement age by, by 2 years from 60 to 64. yes. but yes, there's a sense of contingency of repetition with these reforms at general lack of economy discussion about what is really a big, how big achieved and a lack of understanding of the broader economy. technological context, how much pensions are going to, to weigh or not on workers in the future, depending on the path of productivity,
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economic growth in general. so we have this very limited discussion with a lot of passion on all on all sides. and it's really, i think, relates to the lack of broader how economic discussion. and finally, you have these movements unions and also political parties that have lost and relevance in recent years in recent decades actually, which really sees on this opportunity to, to come back to, to, for and, and to be vocal on their side of the political equation that but really did come back to the question to the public and the unions have to have the appetite for, for a long fight here. yes, i mean it, it's crucial. ok for the union said that they have their loss in political i way say 9 recent years, it's crucial for them to to really be vocal to be heard on this issue.
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and for the government as well as they count, it's ready to go back because they've already postpone at reforms and this is really seen is key. it's not as essential if it's claimed to be economically at. the current system is not as imbalanced as is often said this been this series of reforms already, but i think the political messaging is, is extremely important on both sides for the governments and the unions. there isn't so much political opposition any more. i'm in doubt. hundreds and hundreds of amendments that are not proposed by opposition policies, but they're not that much key in the political discussion. simply the government wants to avoid having to pass the slower by force which, which is allowed by the french constitution. so they are trying to get some,
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some more support, but they will have to, to, to, to pass the slow at some point. anyway, paul, he wrote a political that, but kron has staked his 2nd term and his reputation as an economic reform on raising the pension of age. the question has to be why, when it's so unpopular at least appears to be so unpopular with large swathes of the electorate. well, you know, reform is historically and popular in france and the french have a way of protesting about going through these a routine. if you like, always to ritual or strikes and demonstrate demonstrations and then swallowing it and i think that's what the government is ultimately counting on to happen again. why? because all of emmanuel macros, presidents, if you life has been about trying to make friends a more modern, if you like a more investable country,
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trying to get the economy growing faster and trying to balance the books without having to cause the pain. now he hasn't managed to balance the books, but that's partly because of the coven pandemic, which is meant that nobody's been able to balance their books. and it's partly been because of the. ready war in ukraine, but nevertheless, you know, his key economic reforms have been to get more people into work to get unemployment down and to, to make work the center piece. and in this case, it's rather strange in a way that the french, they latch on to a symbol, they care more about the symbols than they do about numbers. if you like, they prefer demagogy to demography. you know, when, when pensions, you know, when the retirement age was reduced to 60 by pulse, why meter all the great achievement of the left in the 1980s in those days. there were 4 active contributing workers for every one pensioner and the average age.
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life expectancy was 74. will now today we have about $1.00 workers per pensioner and the life expectancy has risen to $83.00. that's all very good. but somehow somewhere you have to find a way of balancing these things out and expecting people in the early sixties to work a bit longer winded french employers actually will employ them. and that's an important part which the government has has yet to properly address. and my view is to say, companies really have to step up to the plate. stocks are trying to get rid of seniors or in their fifties trying to get expensive old dogs that the allegedly can't learn new tricks off their payroll. and then putting them on to the public payroll on various benefits, disability or whatever, years before their actual retirement age. that's what needs to change. but i think
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we're at the point that it of but how much of it, how much of this has to do with that, with my condo and, and his legacy. i remember saying that the pension system is not as in balanced as, as perhaps the, the politicians would have us believe that does he actually need to do it? well, it's currently is the pension. the counts are currently in a slight surplus, but predictably, you know, on the, on the, on a normal path, by 2030, there will be in deficit and that will grow and then stabilize. so yes, the funding does need to be done about pensions in the medium term. ok, the question is this the right time? well, you know, michael tried a more ambitious pension re for a few years ago, and then he had to stop. he abandoned that when, when coverage struck, but essentially he was in political difficulty at the time. so, you know, there's always, there's always a good argument for postponing any reform. but i think that the front needs to
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grasp the metal, the message, if my call were to be defeated. if france were unable to raise it a retirement age to 64, when most of europe is already at 656667, i think would, would again send that, that old message that france is just ungovernable. and i don't think that that would be to the country's advantage professor murray raymer, do these reforms affect some sectors of society more than others? and if so, is that fair? yes, this is one of the main claims made by the union, that these reforms do have a differential impact on different sectors of society. they argue that people from the upper middle classes you work in white collar jobs tend to be able to work for longer and to enjoy a longer time. and once they finish working,
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whereas people who are in more physically taxing jobs, a lot of manual labor, a lot of working class professions are more physically taxing. and people find it difficult to work for as many years as people in less physically mounting jobs. and they also tend to have a shorter time and g to low life expectancy. and so their argument is that this is a reform that has little or no consequence, the people in cushing professions who are probably already working past the retirement age with little panel say, where's the people who are struggling and desperately looking forward to their retirement. this is an extra 2 per 2 years that comes out of their life that they don't want to sacrifice. and so they say it's an unfair reform that's unfair to penalize his working class people. and it's unfair, i suppose, to the younger generation who are carrying the growing booking and who have to pay for the retirement of the, the older generation. which has, you could argue, acquire more wealth from the young could ever hope to acquire. yes is very much an
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aspect to generation to equality here. and as paul mentioned, there is a decreasing number of people working age, paying for people over time and age. and this is why retirement ages have been rising across europe because we have a growing number of people in retirement, age and categories, partly duty and growing life expectancy. and so if you don't perform this now, then that is a problem. generational inequality that will carry through poll, i'm rather right. let me, let me put this question to you. president crohn has already had to make concessions to the union and his political opponents. will he do you think be forced to make for the concessions? you said that, that it's inevitable. this is mrs. going to happen, whether people like it or not, but is it, can i have to make for the concessions, perhaps, backed out entirely as, as jack she like, i had to do. or as we were hearing from,
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from harry right at the beginning of the program, will he be able to force it through without a vote? well, forcing you to with auto, this is always an option and he can't really go back at this point because it's really one of his main reforms. i don't think it's that significant economically compared to other key economy, technological issues which are far less discussed. but that's really one reform that he has really put forward. it was really yes, a center piece and his and has manifesto. so he really has to, to move forward with it and how he, he's certainly willing to, to do it by force. obviously, he is trying to, with his sub prime minister to find an incentive solution and gaining more support for, for from the center. right, which has shrunk a lot in recent years in france,
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the election after election. so where i really facing the challenge of a, a very, a limited political stage. also on this side, a union song, very little representative. and on all sides, people really are, are fighting for i was about say for survival. but let's say for political rather than in a, in a very challenging environment. so obviously the government has to, to really move forward with this reform on political grounds, even though it's not that essential a economy speaking compared to each other and damage all her issues. paul, as i saw you, but shaking your head and agreeing there on, on that at this point, that micron has already had to make concessions to the huge. and will you have to be able i think you probably have to make some or whether they're made to the unions or. ready likely to the conservative living, the opposition party,
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which is as always a call or a later retirement age and therefore can hardly vote against it now. but, but they're holding out for more concession so that they can show that they, they want some social a socially for changes. and i think yes, there are a couple of changes he's already, they've already sort of conceded that people who start work under the age of 21 shouldn't have to work until 64 if they've, if they've got their full contribution. so that 43 years of contributions, they'll need from 2027, then they should be able to retire. there are other concessions that can be made where they've already made some amendments for women. one thing which i think is a big thing and they may concede late on a lot, told the treasury is still resisting it is the question they've, they've put out this headline number and said the minimum pension from now on will
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be $1200.00 euros a month which would be quite a significant boost about a $200.00 euro boost for the poor as pensioners. ok. and the question is, is that $1200.00 net of tax or is it $1200.00? but then they take off a social deduction. and so that still something that's in play and they may have to make a concession that the issue about forcing it through. i mean, there is a french legal provision that they can call a vote of confidence essentially. and they. ready in vote, this article of the constitution and the law is deemed to a past unless the opposition manages to find a majority to overthrow the government. this is a minority government, it doesn't have a majority of its own, therefore it needs extra votes or extra abstentions to pass. ready law so it's a possibility that the government could be top would be very unlikely and it would require all of the opposition forces who ate each other almost as much as they hate
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mr. michael to to come together. more likely is they will be able to get all of the most of it. we can to vote for this bill with one or 2 more changes. the cutoff date in parliament under the procedure for the final vote is the 26th of march. so between now and the 26th of march, i think the government will, has some concessions up its sleeve, which it will eat out of key moments as it sees the number of strike is going down . the number of demonstrations going to one thing that you are hearing today today is the 3rd big protest day and strike day. and the number of strikers in the number of st demonstrators appeared to be slightly down, but it's by no means over. it's during a school holiday period so that maybe your people because of that. and so, but one thing that you are hearing from the. ready radical trade union is told of an all out strike that would be open ended and could be an extended every day.
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and that is something which obviously would cause serious damage over time to the economy. and particularly if they were to do things like blocking well, refineries to prevent petrol, getting to gas stations and things like that. on the other hand that might well. ready split united union, which is there at the moment in the streets, protesting against this bill. because i don't think all of the unions will agree to an open ended general strike. so i, it my political judgment, the union, although they have justice on their side in some of the points which, which rainbow mentioned. you know that there are there on a losing track and they need to also work out what they can settle. ready for. ready what they you know what they call it quits. ok. i reba pension seat up 16 percent very nearly of g d p compared to the new average of 13.6 in just over 12.6
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in germany. now the opposition parties argue that the way to fund earlier retirement is to make employers pay more through taxes and, and that, of course, in a country that has the highest tax take in, in europe after a germany is not a realistic solution. all the other alternatives here, and if not, why not? if it occurred rather speak to the critic respect because i'm a conservative, not an economist. so i would rather respond to some of the claims about the feasibility pushing this through. it was mentioned earlier that the government might try to run the legislation through using the bypass parliament. i think even though they do have the option of doing that, i think it's very unlikely that they will. they have done this repeatedly for the budget reforms that they've done throughout the autumn legislative period. and the nature of this poly mentary override is that they are allowed to do it unlimited
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times the budget reforms, which is a big part of the legislative agenda. but after that, they can only get one more time in a parliamentary session. so they would be using the last bullet and the gun if you will. but i think this is a politically sensitive issue, and they've made it very clear that they don't want to go down the path that they want to get a legislative consensus. so i think it is much more likely that they're going to try to go down the breach of, of working with other political parties. but the republicans are aware of the fact that on the one hand, this is very much something that they have been promoting furnace time. but at the same time, it's also an issue that isn't very popular in terms of public opinion or the public opinion poll coming outside the majority of the country is against. though they are going to be a bit wary, i think as propping up a minority government on something. my sources stand again. let's put the question to to, to remy, then all that viable alternatives to later retirement?
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is that something that the government is missing? here is the opposition, right? why increasing the contribution, as you mentioned, for employers are a current workers is, is an option. but the opposite is, is rather on the table trying to, to read the lesson this disparate on which is already too high. so it's not really a discourse thought just them in, and you just see a few amendments that are proposed in that direction. but that's not taken really seriously. but really considering the outlook for the this bud and the burden of pensions and terms of g d, p. and it's actually expected to, to drop them to align with other european countries. as a result of previous reforms, we've had already 3 rather major reforms over the past 30 years now. and this one
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is not such a major reform and the, and it's, it's more of an acceleration of rigorous reforms as far as the the, the contribution time is concerned and adjusting the age of retirements. but the main adjustments have already been made to, to lower the button on, on, on active workers, the bad enough funding for pensions. and the thing is also as you have a very, disrupted a job market, a very, very, an evil, very unequal as was mentioned before. lots of people who all have below the age of a time, and i have actually no option to, to go back to work when they are a 3rd. and a lot of people at any age, whether educated or not, of course, at fx, less dedicated because more have
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a very difficult success to the job market. and i cannot truly expect to contribute to the system and i will the left side of it at the end of their, of their career. so i think the issue of economy crisis and we've been facing economy crisis after economic crisis and recent years cannot be highly dismissed. it's not just a matter of our fiscal irish metric in the end. and you can take considered different european countries, which would implement exactly the same reforms. but if in the end it have very different growth pattern and productivity, especially the outcome will be very different levels of the balance of the pension system. i'm sorry to interrupt you. time time is rapidly running out here, i want to get one more question info for pull. how much money will raising the retirement age? save isn't going to plug that the deficit in french pension funding. i would save
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enough money for france to spend it. other areas, for instance, defense, given the amount of money the country is currently spending on on assistance with for ukraine. well, that's not the intention of this reform. the intention is that the proposal will generate 18000000000 euros in savings by 2030. but that doesn't help with current defense spending or with age for ukraine, and almost a 3rd in fact, much more than the 3rd. by the time they've made more concessions, of those savings will be redistributed to various different forms of disadvantage groups. people during physically wearing things exciting things that the rainbow was talking about, the working class, people who do heavy labor and who need to retire early. i think a big so i come back to this point that we france it. leslie met,
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not just because of its bulkiness, it's also an exception because so few older people are in work. and that's something the country needs to address. this government is starting on that, but in a very kind of timid way, they want to introduce an index of awe . we break into programming to take your life to and tell you where the turkish foreign minister level at castle is off. no is holding a press conference right now on the earthquakes lesson and those issues are came from outside turkey for our fun and the others. and they are given their support is from 36 countries and over 3000 people. all that stuff came to help and
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you are working on to as, as to do that as fast as we can. and i need another invoice on the other hand, calling and say the same, same support are being sent. and i receive telephone calls from my band is the i'm in the, as you know, this morning period for 7 days and also a nice turkish estates. and oldest sags as half lost and i thank them for those for their efforts
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to do all the rest keys. alterations are been carried off the people who lost their houses and all the organisations assigned to work with them, help them. presidents from explained how this was done, but a in other cities ill. so and on the press, the president ship, we are working, we started and tourism minister mamma, us and a core coordinated to these efforts in non tale and molar.
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the moments and peoples can actually be stay in hotels that is being coordinated that the moments the without support and we came to untidy this morning and a 3 meetings made in ontario and the laser went to manage that as and to see death. and if we were together with all the tourism of representatives and with all the hotel owners, the, they're all together and we have a center in on tale and relevant organizations who dis, meeting as a result of our meetings.

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