Why is the reform suspended until September 30?

In a draft decree sent to social partners on Wednesday, the government plans to extend the current rules for unemployment insurance compensation. A gesture of appeasement addressed to the left.

According to a draft decree sent to the social partners on Wednesday, July 10, the government wants to extend the current rules of unemployment insurance until September 30. And if it is considering it, it is to calm things down. While Renaissance is in the middle of negotiations in the National Assembly, Macronist deputies are seeking the support of the socialists and the reform of unemployment insurance, which aimed to toughen the rights of job seekers, has become a political issue, a symbol. In this context, this extension decree clearly aims to facilitate discussions on the left.

On the evening of the first round of the legislative elections, Gabriel Attal announced, to everyone’s surprise, on Sunday evening at 10 p.m. that he was suspending the reform by issuing a decree until July 31.I cannot, on the one hand, say “I wish there were different political forces, republican forces, working together and, the other to issue a decree, which would have been seen as a form of forcing through,” he justified himself. Gabriel Attal had also taken this initiative by freeing himself from the tutelage of Emmanuel Macron, whom he had not warned. It is doubtful that this new decree was taken in consultation with the Élysée, but one thing is certain: it has the value of a gesture of appeasement.

Matignon is once again pushing back this reform, this time until September 30, the government is therefore skipping the summer. Which, in concrete terms for job seekers, allows the current rules to be maintained and the payment of the allowance to continue under exactly the same terms. According to several sources, by dint of being pushed back the reform should be buried. Which means, in budgetary terms, that the government is giving up nearly four billion euros in savings. This is what the reform was supposed to bring in over a full year.

This extension is also a signal to the unions. Because even if this reform did not put the French people on the streets, it was decried by all the unions, the CFDT, FO, the CFE-CGC, or even the CGT which has moved closer in recent weeks to the new Popular Front. The inter-union organization also published a joint press release on Thursday to request that “the social demands expressed at the ballot box are heard“.