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Bad news for EU vote as French prices outpace pay
EFL - requires subscriptionFrench voters were given more cause to be disgruntled with their government on Friday when it emerged that salaries have not been rising fast enough to match price increases in shops. The disclosure which followed disappointing economic forecasts on Thursday undermined attempts to persuade the French to set aside domestic grumbles and back the European Union constitution in May's referendum. France's employment ministry said on Friday that an index of salaries rose 0.3 per cent in the final three months of 2004. This was less than the 0.5 per cent increase in consumer prices, excluding tobacco. The failure of salaries to keep pace with the cost of everyday staples comes amid widespread concern about the purchasing power of the French public. Anger at the perceived difficulty of making ends meet was one of the factors that propelled demonstrations and strikes across France earlier this month. The grassroots-level dissatisfaction has threatened to turn the European referendum into a protest vote against the government's stewardship of the economy. Since the demonstrations, the government has agreed to reopen public sector pay talks. It has announced changes to company profit-sharing schemes, allowing employees immediate access to their money. It has also introduced tax incentives to encourage companies to distribute more profits to staff. However, the government received a setback on Thursday when Insee, the state statistics agency, said it expected a "return to slowdown" for the French economy in the first half of 2005. [A] poll of 856 people by the CSA Institute said 55 per cent of those with an opinion would reject the treaty if the vote were held tomorrow. The poll was the third in the past week to show French opponents to the treaty outnumber sympathisers, underscoring Mr Chirac's effort to shore up support. A defeat in the referendum would scuttle the constitution, which requires unanimous approval of all 25 states. Henri, poll once again - these results didn't come out correctly. Posted by: too true 2005-03-27 |
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