Sarkozy Faces Strike Threat as Lady Gaga Scraps Two Paris Shows
Sarkozy Faces Strike Threat as Senate Debates Pension
Bertrand Guay/AFP/Getty Images
About 1.1 million demonstrators marched in more than 250 rallies across France Oct. 19, police estimated, up from 825,000 in the last national strike on Oct. 12.
About 1.1 million demonstrators marched in more than 250 rallies across France Oct. 19, police estimated, up from 825,000 in the last national strike on Oct. 12. Photographer: Bertrand Guay/AFP/Getty Images
Oct. 19 (Bloomberg) -- Bloomberg's Ryan Chilcote reports from Paris on the escalation of strike action by unions protesting against President Nicolas Sarkozy's plans to raise the retirement age. (Source: Bloomberg)
French President Nicolas Sarkozy faces a double threat as labor unions consider extending their protests over his planned pension overhaul and as debate over amendments delays a Senate vote on the legislation.
Government officials began tallying the cost of transport disruptions and strikes at oil refineries, saying they’re hurting French competitiveness. Strikes against the bill, which would raise the retirement age to 62 from 60, have caused about half the country’s service stations to run out of gasoline and prompted the singer Lady Gaga to cancel two shows in Paris.
“All this is costing the French economy very dearly at a time when we’re coming out of the crisis, regaining market share,” Christian Estrosi, France’s industry minister, said in an interview on France Info radio.
Unions, balking at the government’s refusal to halt the pension bill, may decide on a seventh day of protests when they meet later today. The Senate, which planned to vote on the bill today, is likely to keep debating as lawmakers consider 238 amendments. A vote may come as late as Oct. 24.
The government says it won’t bow to the opposition Socialist Party’s demand to suspend debate in the upper house of parliament or to union requests to withdraw the bill. Police have been deployed to keep fuel supplies flowing.
“We have several weeks of fuel reserves in the depots,” Interior Minister Brice Hortefeux said on Europe 1 radio today. “The real problem is how we can ensure distribution to gas stations.” He said 14 of France’s 219 fuel depots were blocked by protesters, and that police have removed blockades at eight depots since yesterday.
Fuel Shortages
About half the 12,000 service stations in France are experiencing supply shortages, said Serge Papin, head of the Super U network of 800 outlets which has placed a 30-euro ($42.12) cap on fuel purchases. The worst shortages are in western and central France, he told France Inter radio.
On Oct. 19, unions staged the fourth national strike and the sixth day of protests in two months against the bill, which also raises the age for a full pension to 67, moving France into line with other Group of Seven nations.
Other European countries, including Germany, Italy and Britain, have recently raised their retirement ages or extended the number of years of work needed to qualify for a pension.
Unions are divided as they meet today to discuss how to pursue the protest movement. “There is no way out because the government remains intransigent,” CGT Secretary General Bernard Thibault said on RMC radio. “There is no reason to stop the protests. They should be as big as possible,” he said, calling for another large demonstration next week.
Declining to Strike
The smaller CFE/CGC union, which has mostly private sector members, said it won’t join any strikes or protests once the bill clears the Senate. The pension bill passed the lower house of parliament last month.
Sarkozy’s government says the retirement overhaul is needed to balance the pension system’s budget by 2018. The changes are part of its efforts to reduce the overall deficit. This year, the gap will stand at 7.7 percent of gross domestic product and Sarkozy plans to cut it to 6 percent next year.
Lady Gaga, known for her outlandish costumes, put off shows slated for Oct. 22 and Oct. 23 until Dec. 19 and Dec. 20 because trucks may not be able to reach the Bercy concert venue, the singer said in a statement on her website.
“As there is no certainty that the trucks can make it to Bercy for this weekend’s shows, the Lady Gaga performances are now postponed,” according to the statement.
To contact the reporters on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net; Helene Fouquet in Paris at hfouquet1@bloomberg.net.
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
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