Green light for Macron's reform package
France's President Emmanuel Macron has taken another hurdle to implement his reform package with the approval of the National Assembly. However, the Senate will not vote on the regulations before January 2018. Voting in both chambers of Parliament is necessary to give the executive regulations the status of a law. With 463 votes in favour, 74 against and 20 abstentions, the French National Assembly voted in favour of the labour market reform on 28 November 2017. As Emmanuel Macron has an absolute majority in the National Assembly, this result is hardly surprising. Only the left-wing groups voted against the reform package as expected. On the other hand, the social turbulences and protests on the streets have been almost non-existent.
The greater flexibility created by the ordinances in terms of both individual and collective law makes companies more competitive and thus creates growth impulses. This will also have a positive impact on the labour market. Only one significant amendment relating to the Brexit and the decision to locate Paris as a future location of the European Banking Supervisory Authority (EBA) has been taken into account. The Prime Minister Édouard Philippe had already declared in July 2017 that trader bonuses would not be included in severance payments. Otherwise, the reform was accepted without major changes after about 25 hours of discussion last week.
With the labour market reform, Macron has impressively demonstrated his ability to act. Further far-reaching changes in the education, social security and pension systems are planned for the next eighteen months.