Wednesday, September 26, 2007

Sarkozy plans pension 'reform'


France's president has announced an overhaul of the pensions system for about 500,000 mainly public-sector workers. Nicolas Sarkozy said on Tuesday that the "special regimes" pensions of some workers should be brought into line with the civil service scheme.

The move is being seen as a test of his ability to change France's generous welfare system. Sarkozy said the details of the changes would be worked out in the next "few months".

The "special regimes" allow state rail and power employees, as well as some other workers, to retire early on higher pensions than the private sector. Sarkozy said he would consult labour unions to prevent the mass protests that have derailed previous attempts to alter the system.

Overhauls of pension system in 1993 and 2003 left the system untouched for fear that strikes by transport and utility workers would bring the country to a halt.

In 1995, three weeks of protests forced Alain Juppe, the prime minister at the time, to abandon changes to the "special regimes".

No comments: