2010 French pension reform strikes

In 1983, François Mitterrand's government reduced the retirement age from 65 to 60.[8] The current government plans to raise the normal retirement age for public pensions from 65 to 67 and early reduced pensions from age 60 to 62.[1] This may allow a reduction in public spending. Some people in the working population are opposed to this change. Workers' associations thus organized several strikes.

The size of the strikes also reflects a broader discontent with Sarkozy,[9] with dissatisfaction and mistrust in the government approach for several reasons.

Protest in Paris, 16 October 2010.

Tax reductions

In recent years, and despite the financial crisis, the government has maintained tax cuts for the richest households and companies. A report from the French control department announce that 172 billions €/year are not perceived due to enterprises taxes reductions.[10] French people are confused by the government's reasoning that social spending should be cut because of the lack of money, while pre-crisis special tax cuts are maintained for the richest companies[11] and taxpayers.[12] The 2005 pre-crisis Copé tax cut generated a €22 billion loss in revenue over 3 years, to the benefit of major companies, as opposed to the €1 billion formerly expected.[11] A report by the Conseil des prélèvements obligatoires calculated the real tax rate for major companies, claimed to be about 33%, to actually be approximately 13%,[13] thanks to tax deductions. The cancellation of some of those tax deductions for companies could put €15 to €29 billion a year back into French public finances.[13]

Youth

Students blockade Victor Hugo High School in Besançon-Planoise on 14 October 2010

There are concerns the proposals may have a negative effect on the job market, particularly for young workers. The reform may reduce job opportunities by 1 million and has led some students to join the protests.[14]

For the French sociologist Louis Chauvel, due to demographic and economic history, the younger generation is in a specifically difficult situation. The jobless rate for youth (-25 years old) in France has been higher than 20% since 1980, reaching 26% in 2009.[15] Despite the common appeasing promise than the job market would expand when babyboomers retire (2005–2020), the global crisis came, and retirement reforms plan to keep about 1 million more workers on the market.[15] Other problems include repetitive poorly paid internships, job instability and lower incomes, while the qualifications and skills required for vacancies are ever-increasing, requiring several more years of education and financial investment than for previous generations, while postponing savings and contributions to the retirement insurance system.[15] Moreover, rental costs for housing and relatively lower incomes reduce the quality of housing conditions. These tensions are fuelling anti-government feeling and the strike itself.[15]