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Tuesday, 13 July 2010 - Sarkozy pursues pension reform as scandal lingers |
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    Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Fidel Castro to appear on Cuban television and radio 12 Jul 2010 Majority of Americans lack faith in Obama: poll 6:21am EDT Russia says Iran close to nuclear weapons 12 Jul 2010 U.S. troops face Afghan enemy too young to kill 11 Jul 2010 Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 BP prepares to test new cap on well | Video 11:22am EDT Consumer Reports will not recommend Apple iPhone 4 12 Jul 2010 Missing Iranian scientist turns up in Washington 11:21am EDT Earnings boost stocks; euro gains on Greece | Video 11:13am EDT New AIDS policy shoots for better coordination 11:10am EDT Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 Majority of Americans lack faith in Obama: poll 6:21am EDT Consumer Reports will not recommend Apple iPhone 4 12 Jul 2010 Yankees owner George Steinbrenner dies at 80 11:35am EDT Fidel Castro to appear on Cuban television and radio 12 Jul 2010 Russia says Iran close to nuclear weapons 12 Jul 2010 U.S. troops face Afghan enemy too young to kill 11 Jul 2010 AIG board meet may set ball rolling on AIA IPO: sources 5:16am EDT New AIDS policy shoots for better coordination 11:10am EDT Insufficient vitamin D tied to severe asthma attacks 23 Jun 2010 Sarkozy pursues pension reform as scandal lingers Digg This Tweet This Share on LinkedIn Share on Facebook Related News UPDATE 2-Sarkozy pursues pension reform as scandal lingers 11:34am EDT Sarkozy pursues pension reform as scandal lingers 5:42am EDT French minister in probe to quit as party treasurer 5:04am EDT UPDATE 5-Sarkozy tries to draw line under donations scandal Mon, Jul 12 2010 Sarkozy advises minister to quit as party treasurer Mon, Jul 12 2010 Related Topics World » By Julien Ponthus PARIS | Tue Jul 13, 2010 11:35am EDT PARIS (Reuters) - The French government adopted an unpopular bill on Tuesday to raise the retirement age, after a defiant President Nicolas Sarkozy failed to silence rumblings of scandal over alleged illegal political donations. Labour Minister Eric Woerth, at the center of the affair, said he would step down as treasurer of the ruling center-right UMP party on Tuesday, but he remains in charge of the bill to overhaul pensions which he presented to the cabinet. Sarkozy stressed in a television interview on Monday he was determined to see through the plan to lift the retirement age to 62 from 60 and make people work longer for a pension despite expected protests when it goes to parliament in September. The reform was essential to bring down the public deficit and national debt, and prevent France entering a debt spiral similar to that of Greece and Portugal, the president said. Trade unions promised to fight the bill and said they would seek to make the government retreat. "We will have to create the conditions to force him to change his mind," Bernard Thibault, leader of the CGT union, told France Info radio. "We will aim for the highest possible level of mobilization (on September 7)." Sarkozy said he would not yield on the key points of lifting the retirement age and raising civil servants' contributions gradually to private sector levels. But Woerth said the government was open to negotiations on secondary issues, such as earlier retirement for those doing arduous work, or people who started working before the age of 18, and those with fragmented pension rights. In his television interview, Sarkozy said Woerth had been exonerated of any wrongdoing by a finance ministry report, had his full confidence and would remain in charge of the pensions reform. However, he said he had advised the minister to step down as party treasurer. A former bookkeeper for L'Oreal heiress Liliane Bettencourt has told police that the billionaire and her late husband made illegal cash donations to conservative politicians for years, including to Sarkozy's 2007 election campaign. CONFLICT OF INTEREST A court gave the green light on Tuesday for an independent magistrate to investigate Bettencourt's fortune for the first time in a case against her close friend, society photographer Francois-Marie Banier, who is charged with taking advantage of her frailty to obtain gifts worth 1 billion euros. The Versailles appeal court rejected an attempt by Nanterre public prosecutor Philippe Courroye, a friend of Sarkozy, to block that investigation, which is separate to his own probes into other aspects of the Bettencourt affair. Opposition politicians and media commentators said Sarkozy had not answered, or even been asked, all the tough questions about conflicts of interest in Woerth's dual role of party fundraiser and budget minister in charge of tax until March. Woerth's wife worked for Bettencourt's wealth manager until she resigned last month after allegations of tax evasion by the heiress became public. "Was the response convincing? That is doubtful. Because the Bettencourt affair is not over. Journalists are investigating, as are the justice authorities, with new searches and new questioning every day," an editorial in Le Monde daily said. Sarkozy ruled out a cabinet reshuffle before the pensions bill is adopted by parliament in late October, and sought to regain control of the agenda by focusing attention on the retirement reform and necessary budget cuts. The government has a majority in the lower house and should be able to count on centrist support in the Senate. Prime Minister Francois Fillon told a rowdy parliamentary question time that opposition accusers had been confounded by the tax inspectorate report clearing Woerth. "You wanted to play with these rumors, you have lost, but democracy has gained," he said. The opposition Socialists said that by resigning as treasurer, Woerth was implicitly admitting a conflict of interest in his multiple roles. Pollster Brice Teinturier of the SOFRES institute said Sarkozy would not have convinced many undecided voters with his 75-minute television interview, but he had united his own conservative followers by underlining the left-right divide. He rallied the faithful by attacking the opposition Socialists for having weighed down France's economy with a 35-hour work week, retirement at 60 and high taxes. The left-wing daily Liberation accused Sarkozy of wheeling out conspiracy theories by saying Woerth was the victim of "calumny and lies" by those who want to stop the pension reform. (Editing by Paul Taylor and David Stamp) World     Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.   © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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