10 Dec 2018; DW: The French president made a televised statement announcing a rise in the minimum wage and some tax concessions for pensioners and others on low wages. He is seeking to ease tensions after street protests.
French President Emmanuel Macron proposed an increase in the minimum wage of €100 ($113) in a televised speech to the nation on Monday. He said he would speed up tax cuts and raise wages at a "historic time" for France.
"We will respond to the economic and social urgency with strong measures, by cutting taxes more rapidly, by keeping our spending under control, but not with U-turns," Macron said during his statement on Monday evening.
Speaking after the fourth weekend of anti-government "yellow-vest" protests, Macron said no amount of anger justified attacking security forces or public buildings. Calm and order must reign, he said.
However, in a conciliatory tone he said: "I understand I have hurt some of you with my statements."
Earlier, Macron met with lawmakers, trade unions and business leaders to discuss the recent unrest. He said he plans to meet with mayors and others to listen further to grievances.
Macron said the protests stemmed from "40 years of malaise."
Over the weekend, in the fourth weekend of protests, French police arrested more than 1,700 people who took part in nationwide demonstrations against high living costs and Macron's perceived elitist governing style.
Economic hit
The protests have already affected the French economy. Ahead of Macron's speech, the Bank of France said the unrest had lowered its growth forecasts for the fourth quarter from 0.4 percent to 0.2 percent.
But meeting protesters' demands could endanger Macron's efforts to keep the France's deficit below an European Union-mandated cap of 3 percent of GDP. The government estimates a 2.8 percent deficit in 2019.
"We are monitoring closely the potential new measures being announced, but we cannot comment before they are properly announced and detailed," EU Commission Vice President Valdis Dombrovskis told EU lawmakers.
Macron said in his statement on Monday that he would not reinstate a wealth tax he abolished last year. It had been imposed 30 years ago by socialist President Francois Mitterand. Macron replaced that tax with a new household tax aimed at encouraging people to invest their savings in stocks and bonds to help French companies grow.
Are the measures enough?
The yellow vest movement has been remarkable for its lack of formal leadership. Organized via social media and away from mainstream trade unions and political parties, it has been a nationwide response to a range of grievances, cutbacks in social services and high living costs. Its participants range across the political and social spectrum.
Macron's own rise to power came through via an unusual route, setting up his own, En Marche party. He spent a lot of time during his campaign in open meetings on the lines of town hall meetings, saying he was listening to voters and their demands.
There has also been a certain focus against Parisians, a state seen as centered on the interests of the capital and the wealthy.
