Potential pension pickle peril

There are indeed “interesting times” ahead for the French government, even if the actual subject matter doesn’t exactly grab the imagination initially. Pensions – and forgive the admittedly awful alliteration in the title – are about to become news BIG time.

An ageing population and how to handle increasing pension demands is a major headache for governments throughout the whole of Europe. But France of course has its own peculiar twist on the issue.

Some public sector workers here enjoy “special privileges” and are allowed to retire at 50 or 55 – on full pension - even though the official retirement age is 60. The result is, as people of all political hues agree, a huge financial burden on the nation’s purse strings.

On Sunday the prime minister, François Fillon, declared that draft legislation for reform – especially of those special privileges - is now ready and he’s keen to press ahead.

The president, Nicolas Sarkozy was reportedly surprised by his prime minister’s announcement last weekend, but it’s hard to suspend disbelief that he wasn’t fully aware of what Fillon was planning. The truth in France is that the president is the guy in charge. He appoints the prime minister and sets the policy agenda. Indeed Sarkozy ran for office promising a substantial overhaul of the pension system.

So the week’s grace that Sarkozy has given himself – he has said he’ll make an official statement on September 18 – is more than likely a clever way of sounding out what sort of opposition there is likely to be.

And already there are signs that a repeat of the national strikes that crippled the country back in 1995, when the government tried similar sweeping reforms, is unlikely.

The Socialist Party – squeaking with its by now expected diffident voice – has said it’s not exactly saying “no” to the need for change, although how far they’re likely to support a rightwing-led reform is questionable. They must have some pride left even if the other side has poached many of their top bods for prime jobs.

And although the unions are likely to strut their stuff, at least in front of the cameras, even the left-leaning national daily “Liberation” doubts whether they’ll be able to wield the clout they did 12 years ago.

What’s clear is that Sarkozy needs to tread very carefully and make sure he has everybody singing from more or less the same hymn sheet – something he has been pretty successful in doing so far during his short time in office.

You can bet your bottom euro that if the reforms go through relatively painlessly, he’ll take all the credit. But no matter how close he might have been to Fillon in the run-up to the presidential and parliamentary elections earlier this year, there’s no doubt who will be blamed if millions take to the streets and the country is once again brought to a standstill.