French left ‘could die’ without reforms, says prime minister

Manuel Valls, France's Socialist prime minister, has warned the French left that it "could die" if it does not embrace reforms, as the government faces a series of protest actions against its efforts to force through changes aimed at revitalising the economy.

Strikes by railway and cultural sector workers and a rumbling rebellion among Socialist party parliamentarians have combined to make the coming weeks a serious test for President François Hollande’s shift to pro-business policies that offer tax cuts mainly for employers and unprecedented curbs on public spending.

Mr Hollande, whose approval ratings remain below 20 per cent, has insisted on sticking to the changes – urged by his European partners – despite opposition from his own side of the political fence.

“Yes, the left could die,” Mr Valls, a long-time critic of the hard left, said in a radio interview yesterday. “What could kill it is the century-old debate of the French left, which refuses to accept its responsibilities. People prefer the comfort of opposition . . . [but] the virtue of politics is to govern.”

The government was forced to take steps yesterday to ensure schoolchildren starting their final-year baccalaureate exams could get to exam halls after rail unions extended into a sixth day a strike that has caused heavy disruption across France’s rail network.

The strike is against a reform due to be tabled in parliament this week preparing the French system for compliance with EU moves to increase competition on the railways. Ironically, the railway Bill contains a partial reversal of original EU reforms: it will reunite SNCF, the train and service operator, and the network operator under one holding company – albeit with internal “firewalls” between them – after concessions forced on Brussels by Paris and Berlin.

But two key rail worker unions are calling for a full merger of the two companies and the assumption of their €40 billion debt by the state.

Mr Valls said the reform was “indispensable” and the law would go ahead. He has meanwhile appointed a mediator to try to settle a dispute with part-time performers and technicians in the arts sector that threatens to disrupt big festivals such as the Avignon theatre festival and the music festival in Aix-en-Provence. The performers held a rally in Paris yesterday to press their objection to changes in their working conditions.

Beneficiaries of a system that allows them generous state benefits when they are not working, they are protesting against moves to cap the payouts at €5,500 a month, increase the already relatively high level of their insurance payments and add a delay to the payment of benefits.Copyright The Financial Times Limited 2014