Gabriel Attal has put on hold the controversial reform of unemployment insurance, denounced by both the far right and the left-wing alliance, which largely outdistanced the presidential camp on Sunday evening in the first round of the legislative elections.
The Prime Minister “decided this (Sunday) evening to suspend the implementation of the unemployment insurance reform”, which aimed in particular to tighten the conditions of access to benefits, the entourage of the head of government told AFP. Heavily criticized by the unions, this reform, scheduled to come into force on December 1, was to be ratified by a decree published in the Official Journal on Monday. But the National Rally (RN), on the far right, like the left, united in the New Popular Front (NFP), had promised to repeal this project, which was to tighten the rights of job seekers in several ways.
In a very difficult context for the presidential camp, largely left behind in the first round of the legislative elections by the RN, clearly in the lead, but also the left, the Prime Minister therefore preferred to suspend the project.
The reform is not buried but could “be the subject of adjustments, of discussions between republican forces”, according to Mr. Attal’s entourage, referring to “future majorities of projects and ideas” after the 2nd legislative round.
In order to avoid a legal vacuum, with the current rules only valid until this Sunday, Matignon has already specified that a “joining decree” must be published on Monday morning to extend the conditions in force “until July 31.”
An emergency decree
The reform was to reduce the maximum duration of compensation from 18 to 15 months for people under 57 from December 1. It would also have been necessary to have worked eight months out of the last 20 months to be compensated, compared to six months out of the last 24 months currently.
The presidential camp had repeated that it would support this reform in the name of full employment. In mid-June, President Emmanuel Macron described it as “indispensable” and considered that the government was “right to support it during the campaign”, but assured that it was open on the “modalities”.
Other government voices argued for reopening the issue after the legislative elections, given the opposition of the various non-Macronist political forces. “I’m a little tired of systematically asking the same people to make efforts,” said RN leader Jordan Bardella. On the New Popular Front side, where the idea is to “repeal it immediately,” the reform is seen as “cruel.” On the right, the Republicans (LR) are more divided, with some partially supporting the project while others oppose it.
The unions are fiercely opposed to this reform which comes in addition to those of 2021 and 2023: they fear increased precariousness of the unemployed, particularly among young people and seniors.
The eight trade union confederations in unison
In mid-June, in a joint press release, the eight union confederations (CFDT, CGT, FO, CFE-CGC, CFTC, UNSA, Solidaires and FSU) urged the government to “renounce the most useless, unjust and unfair reform”. most violent ever seen.
The general secretary of the CFDT, Marylise Léon, had notably expressed her “anger”, denouncing a “solely budgetary” reform which would “pick the pockets of the unemployed”.
“This is excellent news,” CGT leader Sophie Binet responded to AFP on Sunday evening. “We must now definitively abandon this unjust and violent reform which threatens to push more than a million workers into poverty.”