Embattled French President
Emmanuel Macron on Monday announced a series of financial measures seeking to
defuse the "yellow vest" revolt that has triggered violent protests
in cities across the country.
In a
15-minute televised speech from the Elysee Palace, a sombre-looking president
told the nation, "I accept my share of responsibility" for the
crisis.
The
former investment banker struck a more humble tone than usual as he sought to
address criticism of his style of leadership.
Macron stressed, however, that
the protests by mostly low-income people in small town or rural France were the
result of long-term problems.
"Their
distress doesn't date from yesterday. We have ended up getting used to
it," he said.
"These
are forty years of malaise that have come to the surface."
Among the
measures Macron announced was a €100 monthly increase in the minimum wage as of
next year, for which businesses would not have to foot the bill.
The minimum wage was set at €1
498 a month pre-tax in 2018 and €1 185 after tax.
Macron's
government had previously suggested that any increase in the minimum wage would
destroy jobs rather than help create them.
But the
protests, which have seen rioting in Paris and other cities and taken a heavy
financial toll, are the biggest challenge for Macron since he came to power in
May 2017 promising to revitalise the economy.
Since
then his popularity has fallen with critics saying he favours the rich and
alienates people struggling, especially in provincial France.
Pensions,
overtime
The
40-year-old centrist also announced he would roll back most of an unpopular
increase in taxes on pensioners introduced by his government.
And he
called on all businesses "that can afford it" to give employees a
one-off "end of year bonus" which would be tax free.
In
another move to appease protesters' anger, Macron said he would do away with
all wage taxes on overtime work.
Macron,
who has been in power for the past 18 months, on Monday held four hours of crisis
talks with government ministers, parliamentary leaders, business and labour
representatives and regional officials.
He had
previously vowed that unlike his predecessors he would not be swayed by street
protests.
But in an
initial attempt to quell the revolt now in its fourth week, the government
agreed last week to cancel a planned increase in anti-pollution fuel taxes -
the spark behind the "yellow vest" protests in car-dependent rural
and suburban France.
But the
move was seen as too little, too late by the protesters, who held a fourth
round of demonstrations on Saturday to press for further concessions on
reducing inequality.
The
campaign of nationwide road blockades and weekend protests in Paris and other
cities over four consecutive weekends, which degenerated into destruction and
looting, have taken a toll on the French economy.
Nationwide
an estimated 136 000 people turned out for the protests last weekend - the same
number as a week earlier.
Since the
start of the protests, more than 4 500 people have been detained, police said.
Speaking
of the violent actions of some of the protesters, who notably set fire to
barricades on the Champs-Elysees and defaced the Arc de Triomphe monument,
Macron said his government would show no leniency.
"No
anger justifies attacking a policeman (...) When violence breaks out, freedom
ceases to be," he said.
'Yellow
vest' reaction
Reactions
to his speech from the "yellow vests" were hard to judge as the
movement is leaderless and has refused to come under the sway of political
parties or trade unions.
Some
protesters, interviewed on French television, acknowledged that Macron had made
some "concessions", but added that these were
"insufficient" to call the protests off.
"This
time, there really is some progress. My smile got bigger and bigger as he
spoke," said Erwan, one of the movement's "spokesmen" in the
northwestern town of Rennes.
But, for
Pierre-Gael Laveder, in the eastern town of Montceau-les-Mines, "Macron
hasn't taken the full measure of what is going on".
"Everyone
of his announcements was booed and the first overall reaction was 'he thinks we
are fools'," Laveder added.
Right-wing
opposition leader Marine Le Pen, Macron's rival in last year's presidential
run-off election, welcomed some of the tax measures announced, but accused
Macron of being the harbinger of "savage" globalisation.
"He
refuses to admit it's the (economic) model which he champions which is itself
called into question," she added.
Jean-Luc
Melenchon, who heads the left-wing opposition Unbowed France, said Macron was
mistaken if he thought "a distribution of money" will calm "the
insurrection".
The
European Commission, which monitors EU members' finances, said it would study
the budgetary impact of Macron's measures which are expected to cost billions
of euros.
"We
are monitoring the potential new measures announced, but we cannot comment
until they are properly announced and detailed," said Valdis Dombrovskis,
the commissioner for the euro.
I was rather surprised
by what is in the above article and there are a few issues to be mentioned in
that regard:-
The Minim Wage
Issue
France is a very, very expensive country to live in. According to the above report –
* the minimum wage
in 2018 was set at Euro 1498; but
* taxation actually
reduce that to Euro 1185.
That means even the lowest paid worker has to fork out Euro
309 in taxation. So what will happen
with the Euro 100 now promised by Macron? Near to 21% of the amount will drop into the
bottomless tax hole in France, Other deductions will reduce the amount to
Euro 68
Will that be enough to satisfy the lower paid French
workers? I do not think so.
The Pension Factor
Even the concessions given is unlikely to materially improve
the life of pensioners. It is likely
that most of the pensioners in fact gets a pension of circa Euro Euro 900 per month – I do not ahve the exact figures
though,
Bearing in mind the extremely high living cost in France they
must be suffering to have 1 meal a day
with that kind of income.
The EU factor
The EU can in fact
nullify the promises since it will have such a big impact on the French budget
that it would not pass EU rules on budgeting.
That meaning the concessions may not even be implemented.