French transport strikes hit the country's economic growth
Patrick Atack
Europe;France

French transport strikes have harmed the nation's economic growth for the fourth quarter of 2019, newly released statistics revealed today. 

Now entering its 42nd day, the nationwide rail strikes are the longest industrial action in French history. They have now shaved 0.1 percent off growth for the final quarter of last year.  

According to Francois Villeroy de Galhau, governor of the Banque de France, the decline had been factored in to the prediction of 0.2 percent growth for that period. 

About 10 percent of French businesses are said to have been hit by the strike action, with the hospitality and transport sectors suffering the most. 

De Galhau said the strikes caused "real discomfort suffered by millions of our fellow citizens, employees and merchants."

Businesses posted turnover losses of as much as 50 percent as the transport shortage kept clients away, which was especially damaging over the usually busy Christmas shopping season.

For weeks, the majority of Paris metro lines were closed or virtually unusable, while suburban train numbers were also slashed.

The government wants to merge 42 existing pension plans into a single, points-based system it insists will be fairer and more transparent, but which unions claim will cause millions to work longer for smaller retirement payouts.

A sixth day of mass demonstrations against the reform has been called for Thursday, and on Wednesday, strikers blocked a nuclear power station in the north of France and a waste treatment center outside Paris to show they are not yet ready to budge.

Over the weekend, the government offered to drop the most contentious element of the overhaul, a "pivot age" of 64 until which people would work to qualify for a full pension – two years beyond the official retirement age.

The Banque de France last week forecast overall growth of 1.3 percent for the French economy for 2019, followed by a lower 1.1 percent in 2020.

Source(s): AFP