June 13, 2024

Unemployment Insurance and Work-Related Reforms: The Government’s Approach to Balancing the Budget

2 min read
Government unity on work and unemployment insurance led by Gabriel Attal

The government is facing a significant deficit in the budget and is looking to make savings. Gabriel Attal gathered the entire government in Matignon on Wednesday morning for a seminar similar to a Council of Ministers meeting, focusing on work-related topics. Social spending, such as unemployment insurance, is a target for the government to address the deficit that escalated out of control last year.

The Prime Minister stated that they will continue to prioritize rigor and responsibility with a focus on work, as the more French people are employed, the better their chances are at balancing their finances. The government seminar will include discussions on encouraging people to return to work through reforms such as the RSA and unemployment insurance. It will also address issues like de-employment, low wages, and new forms of work like the four-day week, which are still in the experimental phase.

After a significant increase in France’s public deficit, reaching 5.5% of GDP in 2023 according to INSEE, the government had to make 10 billion euros in cuts in mid-February on the 2024 budget. Additional savings will be necessary this year and especially in the 2025 budget, estimated to be “at least 20 billion” euros. The government is considering various avenues to boost employment and save money, including a new unemployment insurance reform that unions are contesting.

One of the key proposals being discussed is a reduction in the duration of compensation for the unemployed, with the argument that structural reforms are necessary to achieve full employment. This proposal is expected to take at least a year to have an impact on public accounts. The government is looking for financial margins to address the deficit, especially in the employment sector where few margins currently exist.

In addition to these economic and political discussions, there are various topics related to sports betting, online payments

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