Following the initial round of early legislative elections, Prime Minister Gabriel Attal announced the temporary suspension of the unemployment insurance reform. This decision was made in response to opposition from various political factions and unions, who were unhappy with the proposed changes to access to benefits. While President Emmanuel Macron previously supported the reform, he indicated openness to discussing the details and finding a solution that would be acceptable to all parties involved.
To prevent a legal vacuum, an extension of the current rules was put in place until July 31st with a “joining decree”. This decision was made in light of protests and changing electoral dynamics, especially with the extreme right gaining traction among voters. However, not everyone was pleased with this delay, with Minister of Economy and Finance Bruno Le Maire expressing caution about temporary compromises in policy.
The reform as proposed by the majority party aimed to reduce the maximum duration of compensation and adjust work requirements for eligibility. The Presidential camp had reiterated its commitment to this reform in pursuit of full employment. Despite the temporary suspension, the government remains steadfast in its stance on pushing through with the reform and maintaining its position amidst opposition and shifting political dynamics.
