France prefers subsidy to égalité

Competition is a dirty word in France. It threatens the privileges of state employees, says Anne-Elisabeth Moutet

Do French unions have too much power? Anne-Elisabeth Moutet debates on F24.

By Anne-Elisabeth Moutet

1:40PM BST 15 Jun 2013

217 Comments

As the French rail strike followed the French air traffic controllers’ work stoppages last week, and tens of thousands of passengers and commuters saw their plans disrupted, it became a point of perverse pride for French commentators to deny that anything was very much amiss. The government, we were told, wasn’t really unhappy with the popular message being sent to Brussels, whether on the Single Sky Initiative, or the (very slow) opening of the French railways to free competition. In fact, it was felt at the Élysée that François Hollande, a man who doesn’t come equipped with a handbag, would only find his negotiating stance against too-fast reforms strengthened by this visible expression of national hostility.

British public opinion sees the EU as a source of Byzantine regulations hampering free trade. A large cross-section of the French are incensed by what they see as the European Commission’s Anglo-Saxon-tainted liberal economists and free-marketeers attacking the myriad privileges and protections that make the life of those happy enough to benefit from them so comfortable.

Competition is often a dirty word in France: never more than when it threatens to disrupt “avantages acquis” (acquired advantages), the gold-plated benefits a group of (usually) public employees has managed to have enshrined in contractual agreements. For years, among the various bonuses that can double an SNCF railwayman’s salary, was a “prime de charbon” (coal allowance), finally cancelled long after the last steam engine was retired. Pension age starts at 50 (soon 52) for train drivers and 55 for most other personnel.

Similarly, the 300,000 employees of EDF, the nominally privatised national electricity utility (the French State still owns 85 per cent of its equity) enjoy subsidised meals, holidays, cultural events, housing, as well as huge discounts on their power bills, lifetime employment, and early retirement provided for by a pension fund separate from the cash-strapped national system. Most of these perks are managed in-house by a committee dominated by CGT, the Communist union, on a €500 million budget funded by a statutory 1 per cent contribution of the company’s turnover. As a result, EDF, a multinational corporation of recognised excellence, turns only nominal profits compared with its competitors.

It hurts to lose these benefits, which explains why the French public sector strikes so often and so fiercely. The paradox is that apart from the quarter of the French workforce employed by the bloated French state, almost no one else in France belongs to a union – only 7 per cent of the 22.3 million-strong workforce do. Yet because the role of the unions is enshrined in French labour laws, the country’s main union representatives are party to all government negotiations on social reform – with predictably intransigent results.

Since 1979, when Giscard d’Estaing’s then PM, Raymond Barre, a no-nonsense professor of economics, tried to go blood, sweat and tears on the French after the second oil crunch, and lost, the mantra in Paris has been negotiation, negotiation, negotiation. Less than two years later, Ronald Reagan broke a lockdown with striking American air-traffic controllers by firing every one of them, and replacing them by requisitioning their military counterparts. The French still haven’t recovered from such a terrifying spectacle. The only prime minister to try to hold firm against a public service general strike, Alain Juppé, had to cave in ignominiously after two months in 1995, and his boss Jacques Chirac lost a general election just 18 months later. In short, courage doesn’t pay in France.

Needless to say, François Hollande doesn’t want to consider such extremes. For one thing, all this week’s strikers are his natural constituents: the last group of socialist voters in France are government employees. Teachers will, in all likelihood, stay with him, but train or air-traffic workers could succumb to Marine Le Pen and her populist, anti-Brussels, anti-“international finance” stance –or the increasingly similar-sounding Jean-Luc Mélenchon, the extreme-Left leader.

France’s socialists have had no New Labour conversion in which they officially renounced Marxist ideology. Hollande declares himself to be a social democrat in private, or abroad; but denies it frantically in public. As a result, a strange parody of class war will continue here for the foreseeable future, defending privileges instead of fighting them, led by unions representing little more than their own apparatchiks.

© Telegraph Media Group & Anne-Elisabeth Moutet, 2013

Fisticuffs with a French robber left me bruised but not beaten

Not everyone who opens their door in a quiet street off the Champs-Elysées is a little-old-lady pushover, says Anne-Elisabeth Moutet.

The Champs-Elysées on a safer day Photo: AP

By Anne-Elisabeth Moutet 7:08AM GMT 07 Mar 2011

35 Comments

It took about five minutes to turn me into a Victim. I opened the door one afternoon to find a slim woman in biker leathers on my landing, perhaps two inches taller than my 5ft 3in. She said she had a package for me, and was carrying a cardboard box complete with a sheaf of documents.

The next thing I knew, I was shrieking blue murder while she repeatedly butted me with her full-face helmet. "Au secours! Au secours!" I bellowed while she tried to muzzle me, simultaneously punching me in the ribs and shoving me back into my flat.

My overriding feeling was of flabbergasted surprise, a sensation of nightmarish unreality mixed with fury that this cow thought she could get away with knocking me out and helping herself to my things. I knew I had to keep screaming – as for fighting back, that was sheer instinct.

I think it was mostly the noise that made her flee, and perhaps the unpleasant surprise that not everyone who opens their door in a quiet street off the Champs-Elysées is a little-old-lady pushover. Shaken and shaking, I got back inside and called the police, who duly showed up 20 minutes later. When I told them I was quite unscathed, they suggested I sit down, have "a little glass of something strong" (we are Parisian, after all) and wait for the adrenalin to ebb away.

Running a hand through my hair, I found half a dozen bumps. Meanwhile, my ribs started complaining, too. "Do you need an ambulance?" the flics asked. Surely I didn't. I made my way to the police station in a taxi, to file a formal complaint, and was told to report to the Médecine Judiciaire's Special Victims Unit at Hôpital de l'Hôtel-Dieu near Notre Dame, the only place officially mandated to assess the damage.

The strange thing was that at the unit, my injuries were treated almost as an afterthought (in fact, the doctor I saw missed a hairline crack in my eighth right rib, which was later caught by my private GP). What seemed to be everyone's overriding concern was the deep psychological damage that I had to be suffering. I was urged no fewer than four times by various people in white coats to go and receive counselling from the shrinks.

It was no use objecting that I was fine, really. "But I won the round!" I protested. I could see on their faces that this was only proof of how disturbed I was. "You can get compensation from the state," I was advised. Compensation for what? That nice Sécurité Sociale is already picking up my medical bills, nothing was stolen, and while my rib does hurt, especially at night, I can still bask in a mild sense of achievement at having driven off the invading horde of one.

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The prize for the oddest French burglars must go to the team who recently robbed a funeral parlour in the small town of Valadon, making off with a couple of coffins, some cash and the village's only hearse. Even stranger, this is the fourth time the place has been burgled in as many years. It certainly gives the lie to "You can't take it with you."

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The fiscal rigourists attacking Britain's high-speed rail link, such as the Telegraph's own Simon Heffer, have got it completely wrong. We French always knew that the TGV infrastructure would be loss-making. But economists calculated that the benefit to the economy at large was well worth the red ink on SNCF's balance sheet.

This is known as the externalities theory. SNCF did not directly profit from the development of former rust-belt cities such as Lille, or subsequent falls in the local crime rate, or the sharp increase in property prices along the tracks, or the added mobility in the workforce. But eventually, we all did. I suspect that British northerners, like the French ones, would rather find jobs in their region than come south. So give them trains.

© Copyright Telegraph Media Group & Anne-Elisabeth Moutet 2011