Tuesday, September 7, 2010

On strike!


If you were in France today, you would probably see huge demonstrations in most cities, large and small.Also, there would be no public transport, no trains, no planes,no TV and no public radio. France is on strike. It is a particular trait of that country, that, although they are under a parliamentary democracy, mob rule is often the only form of opposition. (Come to think of it, we have the same thing in the US with the Tea Party!)
The reason for this new strike is the pension reform instituted by the government and supported by its majority. France, like most advanced countries, is the victim of both the financial crisis, imported from the USA, and of the coming of age of baby boomers. The Free French Government of 1945, fresh from the German defeat, and very close to its Soviet ally, instituted a very generous social regime. Since then, the social coverage has been added to and multiplied. In 1945, France had vast colonies, many clients and few competitors. Today, in a globalized world, France is but a medium sized advanced country, without colonies and with an industrial landscape devastated by the flight of manufacturing industries to Eastern Europe or Asia. The generosity of the French Welfare state has reached its limits. The government, elected on the promise of reforms is acting upon its promise. But French citizens thought the reforms would be applied to others.
The proposal to change the retirement age from 60 to 62 has sent 2 million people in the streets.
To add a twist to the situation, Mr.Woerth, the labor minister, is under a cloud of suspicion, being accused of financial shady deals, a scandal well manged by the minority to weaken the reform.