This French Life

Workers needs to pay into pensions for longer

A REPORT into proposed changes for the French pension system has recommended that people should pay contributions for longer to get a full pension.

The Moreau report also said well-off pensioners should pay more taxes, and that there should be a small increase in employers' pension contributions.

The panel recommends increasing the contributions period needed for a full pension from 41.5 years now to up to 44 years, which could mean that many could end up having to work longer although the statutory retirement age would not change.

Increasing the contributions period was believed to be the best way to adapt the system to longer life expectancy, and that changing the actual retirement age was something to look at in the medium term.

The government is set to sit down with unions and business leaders in the coming weeks, although the threat of strike action and worker protests is likely to hang heavy over the discussions.

Auto-entrepreneur scheme gets €19,000 per year limit

A FINAL decision has been made on the auto-entrepreneurs, with a new income level of €19,000 per year being a key cut-off point.

At a cabinet meeting today, the minister responsible for artisans, commerce and tourism, Sylvia Pinel, explained that this new level will be used as the point were it will be decided if a business can remain within the auto-entrepreneur scheme or not.

Should a business (artisanat or professions libérales) earn €19,000 a year for two successive years then they will have to register within the existing schemes, but also receive help and support, as well as a smooth increase in charges applied.

Time limit on auto-entrepreneur set to apply only to those in building sector

IN an attempt to pour oil on troubled waters, the prime minister, Jean-Marc Ayrault, has said a proposed time limit on l'auto-entrepreneur status will only apply to those in the building trade.

There had been much worry and concern when it was revealed the minister responsible for artisans, commerce and tourism, Sylvia Pinel, planned to place a time limit on those registered as an auto-entrepreneur.

Supporters of the scheme said such a limit would kill one of its key strengths, forcing people either to close down or work on the black.

But speaking on Friday 31 May, Jean-Marc Ayrault said, any time limit would only apply to those registered as auto-entrepreneurs within the building sector as there were particular rules and regulations that had to be met.

Details of the changes will be announced by Sylvia Pinel in September, so the full 'devil in the detail' will not be visible until then.

Related: Time limit on auto-entrepreneur status looking likely

EU challenges France to make changes to its economy

FRANCE, and a number of other European countries have been given a pass on hitting their budget deficits by the European Commission.

The Commission has published a report into eurozone members, and whilst a three per cent budget deficit target has long existed, France has been given another two years to reach it.

In its report the European Commission admitted that the current austerity measures, designed to ensure countries hit the three per cent target, are not working and so has decided to cut some slack to a number.

Specifically, France has been given six recommendations to follow, three of those involve improving the competitiveness of the economy, but also demands to bring more transparency to the tax system as well as improve the employment rate amongst older workers.

Time limit on auto-entrepreneur status looking likely

IT is looking likely that a time limit will be placed on how long a person can register their business under the auto-entrepreneur scheme.

According to Le Figaro, the minister responsible for artisans, commerce and tourism, Sylvia Pinel, will put forward proposals in September for a two-speed system.

In April, Sylvia Pinel said she was open to discussions on a time limit for auto-entrepreneurs should their business be their principal way of earning an income.

Whilst no limit would be introduced for those people registering to undertake supplementary work to support an existing job.

And according to a press release from Sylvia Pinel it looks as though this will be the chosen option, with promises of support and training for those having to leave the scheme after the time limit.

Critics of the auto-entrepreneur system, including representatives of the artisan sector, have said it creates unfair competition between those registered in the classic system and auto-entrepreneurs.

Continued slide in employment, as temporary work increases

THERE has been a continuing decrease in payroll employment in France the statistics body, INSEE, reports.

Their flash estimate for the first quarter of 2013 shows a fall of 20,300 on the final quarter of 2012, when payroll employment fell 44,000.

And INSEE says it expects to see temporary employment increase by 12,000 in the first quarter of 2013, as more people take the option of part-time and temp employment.

French haulage sector slides, as new car registrations at 1997 levels

FIGURES for 2012 show that freight transport in France and longer journeys by car drivers have fallen, with the struggling world economy being blamed for the drop.

The environment ministry has released a report on road transport covering last year in France, and found that that around 5,000 jobs were lost in the haulage sector.

There was a 4.4% fall in the tonne/km measure of products transported in France, which covers road, rail and waterways. Although road haulage still makes up 83% of the overall transport sector.

Daily passenger transport is still rising, but at a slower pace than in the past, with the number of vehicles on the national road network, including autoroutes, falling slightly.

And the figures also show that the number of new car registrations in 2012 by the general public tumbled to 1.9 million, a figure last seen in 1997.

Related: Sharpest fall in French private sector output for four years

Uncertain future for Saint-Nazaire shipyard

THE jewel in the French shipbuilding industry, the Saint-Nazaire yard, faces an uncertain future after its majority shareholder said it may sell its European operation.

South Korea's STX Group is struggling with the fall in demand for shipbuilding as the global economy struggles.

And in an attempt to reduce costs a spokesperson for the company said it will consider selling its European assets including shipyards in France and Finland.

Two-thirds of the Saint-Nazaire yard is owned by STX, while the French government owns the other third, and unions have already said that government should step in.

It was only in December 2012 that the yard won a contract to build a giant luxury cruise liner for Royal Caribbean International measuring 361 metres in length.

The yard employs 2,100 people, and provides work for another 4,000 sub-contractors.

Dark Ages for French metal working

TANG tang tang, tang tang tang, tang ting. Georges Erdos is at the forge heat-treating a piece of metal. Tang, tang, tang, walloping it with a mallet, writes Carol Miers.

But leave the nostalgia to others, as Georges Erdos is an angry man, not a peaceful artisan, frustrated more than satisfied.

"I used to love this," Georges says. "Now making a knife from a forge is finished. For myself, there is maybe five or six years. Afterwards people who want things, a château railing or a gate, well there won't be anyone to do it. It is dead."

In the 90s knife-making and metalwork gave him great pleasure, because you have it all, the forge, the heritage of the blacksmith, the chemistry of carbon and steel, the way of making knives.

Record number of people out of work

AS feared the number of people out of work in France has hit a record level, beating figures from as far back as 1997.

Figures for March show there are now 3,224,600 people unemployed, an increase of 36,900, or 1.2%, on February. The unemployment figure has risen 11.5% over the past year.

Since May 2011, unemployment figs increased by av. of 22,300/month francetvinfo.fr/chomage-la-fra…

— Craig_McGinty (@thisfrenchlife) April 25, 2013

A deeper look into the figures shows that while often the focus is on the number of young people unemployed, those aged over 50 have seen dramatic job losses, an increase of 17% in the past 12 months.

On focalise sur les jeunes mais la hausse du chômage touche en premier les plus de 50 ans (688.500, +17% en un an), oubliés des politiques.

— Nicolas Prissette (@NicolasPri7) April 25, 2013

This number of unemployed beats the previous record, from 1997, when 3.195 million people were out of work.

Related: Close on 100,000 private sector jobs lost in 2012