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Macron targets public sector with possible voluntary redundancies

Unions described it as a 'massive public-sector jobs cut plan in disguise' which did not augur well in a country still with 'mass unemployment'.

La rédaction de Mediapart

This article is freely available.

Some French government employees could be offered voluntary redundancy as President Emmanuel Macron pursues plans to shrink the state in a country with one of the highest public spending ratios in the world, reports Reuters.

Spelling out for the first time since Macron’s election last May how he aims to modernize public administration, Prime Minister Edouard Philippe said the government would have no qualms about shaking things up, even if it encounters resistance.

“There is no doubt we may hurt some sensitivities, some situations we got used to,” Philippe told a news conference to present a first review of public spending.

“But you can’t fix a country, you can’t aim high, without being aware that you must shake and change some of these situations sometimes.”

His budget minister Gerald Darmanin said a voluntary redundancy plan for government employees could be envisaged, although he gave no details or timing for the plan.

“It wouldn’t be a voluntary redundancy plan for everybody, of course. It would be a way to adjust our public services,” he said.

Unions and left-wing politicians criticized the plan.

“This massive public-sector jobs cut plan in disguise does not augur well for a job recovery in a country still mired in mass unemployment,” Luc Farre of the UNSA union said in a statement.

The review is the first attempt to detail how Macron aims to cut public spending by 60 billion euros - or 3 percent of economic output - over the term of his mandate as promised.

Asked about the redundancy plan during a news conference in Tunisia, Macron said: “You can’t pretend to want to transform the country and say the public sector is some kind of protected fortress which shouldn’t be transformed, which should never be adapted.”

The redundancy plan shows how the former investment banker, who also wants to increase the use of merit-based pay for civil servants and put more government workers on private-sector contracts, intends to instill a more corporate culture.

Previous governments have preferred to use the bump in baby boomers’ retirements to reduce headcount by not filling every vacancy. But payrolls still account for more than a third of the central government’s total spending.

Read more of this report from Reuters.