Youths kick tear gas grenades during a demonstration in Nantes, western France. AP
Youths kick tear gas grenades during a demonstration in Nantes, western France. AP
Youths kick tear gas grenades during a demonstration in Nantes, western France. AP
Youths kick tear gas grenades during a demonstration in Nantes, western France. AP

Why France's youth are so set against pension changes


Colin Randall
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In calm, precise tones she might use in lectures at her elite Parisian “grande ecole”, a student explained to a television reporter why she was smashing illuminated advertising signs during riots over President Emmanuel Macron’s contentious pension reforms.

“I think violence is unfortunately necessary,” she said, using a heavy implement to smash glass to cries of encouragement from others, unseen.

“I don’t attack cars or shop windows. I attack advertising.”

Not all those involved in an escalating series of anti-government demonstrations throughout France — more than a million were expected to take to the streets again on Tuesday — are quite as selective about their targets.

Cars have been set on fire, businesses and public buildings vandalised and police officers attacked in France's worst riots since the “gilets jaunes” or yellow vest movement earlier in Mr Macron’s presidency.

Strikes and blockades have severely disrupted everyday life, leading to massive queues for petrol, especially in Paris and Marseilles, and hundreds of people have been arrested, amid well-documented instances of grossly excessive force by police. A state visit by Britain’s King Charles III, his first since succeeding Queen Elizabeth II, was cancelled because of security fears.

The president has condemned “violent armed activists” for the trouble. And yet opinion polls consistently show widespread support for those taking to the streets.

French riot police extinguish a fire amid clashes with protesters in Paris. Reuters
French riot police extinguish a fire amid clashes with protesters in Paris. Reuters

One survey, published at the weekend by a Sunday newspaper, Le Journal du Dimanche, found 68 per cent hostile to the reforms, though only 21 per cent believed Mr Macron would be forced to abandon them. Other polls have recorded even greater opposition.

France, one of the most beautiful countries of the world, is not currently a pretty sight. Thousands of tons of rubbish are piled high on the streets of Paris, contempt for authority is rampant and the public is turning increasingly to extremes of left and right.

The prominence of students in the protests carries echoes of the so-called Paris spring of 1968, when France was paralysed by strikes and riots against the then president, Charles de Gaulle.

Successive French governments have attempted to address the issue of pensions, always provoking strong resistance from unions.

Viewed from almost any neighbouring country, the President’s reforms seem a model of reasonableness. In the UK, the state pension becomes payable at 66 and this will rise to 67 by 2028, 68 in the 2040s.

Under Mr Macron’s plan, the age of retirement in France will rise from 62 to 64 in stages between now and 2030 and people will need to work longer to qualify for full pensions.

What are known as “special regimes” allowing some workers to retire much earlier will be abolished but those doing jobs considered dangerous will still benefit from concessions. The striking rubbish collection crews in Paris are an example; their grievance is that retirement will be at 59, not 57 as now.

At the heart of the crisis is the importance of the work-life balance in the French culture. From early in their working lives, people talk about their future pensions as the British, for example, discuss house prices. They want to work less, not more.

When a former president, Nicolas Sarkozy, proposed lifting tax on overtime to encourage employees to work more and earn more, there was uproar.

But Mr Macron has made the reform the cornerstone of his second and final term of office. He says that without such change to take account of people living longer, rising deficits will overwhelm the pension system.

But without a parliamentary majority since the legislative elections of last year, he has had to rely on a deeply controversial decree known as article 49,3, to force through his bill. Unions and other opponents of the reform have seized on this as evidence of an undemocratic, even dictatorial approach.

“The government is trying to make savings on the backs of millions of workers,” says one militant supporter of the protests. “They spend hundreds of millions on war, do nothing to deal with tax havens and work against the interests of the French people.”

France has experienced weeks of protests and strike actions over a rise in the pension age passed last week. Getty
France has experienced weeks of protests and strike actions over a rise in the pension age passed last week. Getty

“The level of hatred towards Mr Macron is astonishing,” says Jacques Reland, a French analyst and commentator specialising in European political, economic and social issues.

“He handled Covid well, has been strong on Europe and Ukraine, the economy is doing quite well and France has suffered a lot less than say, Britain from the energy crisis and yet he inspires this animosity.”

Mr Reland, a senior research fellow at the London-based Global Policy Institute, says France has a historic taste for confrontation that has played a part in the ferocity of opposition to the reforms.

“The French are very attached to their social advantages. In addition, his policy was badly packaged, very badly presented and the timing — in the midst of a cost of living crisis with companies announcing big profits — could not have been worse.

“Part of the trouble is that Mr Macron is acting as if he still had a parliamentary majority and while 49.3 has been used in the past, forcing the reforms through in this way has caused great anger.”

Resentment at the use of the decree was also cited by some of those participating in an otherwise unrelated demonstration, over plans to build new reservoirs, that led to scores of injuries to police, protesters and journalists at Sainte-Soline, western France at the weekend.

Although Mr Macron has ruled out an about-turn of the fundamentals of his reforms, ministers say they are willing to talk to union leaders on a range of related issues. But they are adamant that there will be no “pause” on implementing reform, as demanded by one union.

Olivier Dussopt, France’s labour minister, insists immediate action is needed to avoid the annual pensions shortfall spiralling to a “cumulative deficit of 150 billion euros” by the end of this decade.

“Do they imagine that if we pause the reforms, we will pause the deficit?” he said on BFMTV, adding in another interview that while the changes required “effort” from the French, “there will be no losers because pensions will not go down”.

So far, there is no sign of either side backing down. Given his unpopularity, and that of his centrist Renaissance party, he seems unlikely to gamble on new parliamentary elections.

Mr Reland calculates that if the president holds firm, insisting as he did in a television interview last week that the national interest mattered more to him than popularity, the best solution would be for the constitutional council — France’s highest such body — to reject all or part of the bill.

“But I’m afraid it looks like getting worse before it gets any better,” he said.

Community Shield info

Where, when and at what time Wembley Stadium in London on Sunday at 5pm (UAE time)

Arsenal line up (3-4-2-1) Petr Cech; Rob Holding, Per Mertesacker, Nacho Monreal; Hector Bellerin, Mohamed Elneny, Granit Xhaka, Alex Oxlade-Chamberlain; Alex Iwobi, Danny Welbeck; Alexandre Lacazette

Arsenal manager Arsene Wenger

Chelsea line up (3-4-2-1) Thibaut Courtois; Cesar Azpilicueta, David Luiz, Gary Cahill; Victor Moses, Cesc Fabregas, N'Golo Kante, Marcos Alonso; Willian, Pedro; Michy Batshuayi

Chelsea manager Antonio Conte

Referee Bobby Madley

Family reunited

Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

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Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

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Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

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Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Who: UAE v USA
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When: Friday, 2pm
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Man of the Match: Erik Pieters (Stoke)

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Porsche Macan T: The Specs

Engine: 2.0-litre 4-cyl turbo 

Power: 265hp from 5,000-6,500rpm 

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Transmission: 7-speed dual-clutch auto 

Speed: 0-100kph in 6.2sec 

Top speed: 232kph 

Fuel consumption: 10.7L/100km 

On sale: May or June 

Price: From Dh259,900  

Updated: March 28, 2023, 12:31 PM