Pressure Mounts on PM Lecornu Amid Purchasing Power Negotiations
PM Lecornu navigates rising tensions as he meets unions and employers amid budget negotiations.
- • Lecornu faces pressure from unions and employers on budget reforms.
- • Significant protests against proposed budget measures show public discontent.
- • Plans to improve purchasing power include lowering VAT and raising salaries.
- • Future negotiations will be critical for Lecornu's political stability.
Key details
Prime Minister Sébastien Lecornu faces escalating pressure as he grapples with budget negotiations centered on improving purchasing power in France. On September 24, he is scheduled to meet labor unions and employer groups to address mounting tensions that have surfaced since his administration proposed budget reforms aimed at reducing the national deficit to 4.6% of GDP by 2026.
Lecornu's ongoing negotiations follow previous mobilizations, including a significant demonstration on September 18 that saw between 500,000 and 1 million participants, vocalizing opposition to controversial budgetary measures. These included proposals for a freeze on indexations, the elimination of 3,000 public sector jobs, and raising the retirement age to 64. In light of the strong public response, Lecornu previously scrapped a plan to cut two public holidays, a move popular among workers.
As he seeks to craft a budget that achieves necessary savings of 44 billion euros, Lecornu is also considering alternative taxation strategies for wealthy households, a suggestion supported by unions and sectors of the left. Meanwhile, unions have issued an ultimatum demanding the complete abandonment of the proposed budget plan, highlighting the need for fiscal justice and better social conditions amid the French government's €211 billion aid package designated for private companies.
The atmosphere remains fraught, with the Rassemblement national expressing skepticism about Lecornu's stability, raising concerns that the government may struggle to secure a majority in the National Assembly. Political parties are actively advocating for measures including lowering VAT, enhancing net salaries, and increasing pension benefits to bolster citizens' purchasing power.
As negotiations unfold, the outcome is crucial for Lecornu's administration and its ability to navigate the delicate balance between economic reform and public demand for social equity.