Fears for French economy as strikes cost millions

| October 25, 2010 | 0 Comments
Fears for French economy as strikes cost millions

The French Government has today warned that strikes against pension cuts are costing the economy between €200 and €400 million per day.

Ongoing protests and strikes against the Government’s changes to pensions have resulted in fuel shortages and travel chaos throughout the nation.

France’s Finance Minister, Christine Lagarde, said: “Today, we shouldn’t be weighing down this recovery with campaigns that are painful for the French economy and very painful for a certain number of small- and medium-sized businesses.”

Similar measures have been introduced in the euro zone as workers protest against the pay cuts and pension reforms.

In particular, Greece’s tough measures have met with strong opposition from unions.

Greece’s two main unions have launched several strikes this year but some of the protests have been violent. In May, a strike resulted in three deaths in Athens after protesters set fire to a bank.

Meanwhile, French President, Nicolas Sarkozy has defended the pension reforms and said they are “inevitable” in the face of France’s rapidly ageing population and spiralling budget deficit.

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