Following the results of France’s parliamentary elections, Prime Minister Gabriel Attal halted the implementation of an unpopular unemployment insurance reform. This move came after his party’s poor performance in the elections, conceding to the far-right Rassemblement National party. The reform aimed to restrict access to benefits, sparking widespread criticism across political spectrums.
Unemployment insurance: French PM Attal defends his reform ‘more focused on activity than inactivity’
The government’s backtracking signifies the end of a prolonged period of uncertainty, with the reform initially set to take effect before the current benefits expired. The decision to extend existing rules followed intense pressure and highlights the challenges faced by the government in reforming France’s labor market.
Backing down
The proposed reform aimed to tighten eligibility criteria and reduce benefit durations, saving billions of euros annually. However, widespread opposition forced the government to reassess their approach, reflecting the complexities of enacting unpopular policies in a polarized political landscape.
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