Sarkozy’s Leadership

Roh Needs to Learn From Determined Pension Reform

French President Nicolas Sarkozy on his visit to China appears to be in good spirits as he was given a boost thanks to his apparent win over unionists in a transport strike dispute that lasted for 10 days. Railway workers voted to return to work last week in the face of strong repercussions from the public who rallied behind the French head of state. Sarkozy managed to earn the people's sympathy, as he has remained determined to push for pension reform in state-owned enterprises, one of his main campaign pledges. The French case has reminded us of the importance of the leadership of principle required in a top national leader.

Workers at France's public utilities have been basking in high pension allowances despite their relatively low wages compared with private businesses. Former French President of Jacques Chirac's attempt at pension reform in 1995 ended in failure, outmaneuvered by a massive strike that lasted for three weeks, paralyzing the public transport system. He withdrew the reform plan while then Prime Minister Alain Juppe had to step down. Since then France has been considered as a nation vulnerable to general strikes without the possibility of reform.

Despite escalating transport chaos because of the railway strike, Sarkozy did not yield to the unions' demand, describing the strike as an act of taking millions of citizens hostage. More than 70 percent of French people supported him with his unswerving commitment toward reform. Sarkozy provided the unions with room for negotiations by proposing trilateral meetings of representatives from labor, management and government sometime in December. He is lauded for having shown flexible and embracing leadership while abiding by principle.

The current administration has vowed to press for reform of the civil service pension, which has seen repeated deficits. But it did not submit a bill toward that end to the National Assembly session that ended on Nov. 23. The government has instead come under criticism for having tried to expand the size of the government organizations and increase the number of public officials.

Despite the approaching presidential election, no candidate has been calling for the reform of the public pension fund apparently wary of possible resistance from the public sector. What matters is that the people's burden will increase continuously should pension reform be further delayed. Taxpayers need to pay an additional 972.5 billion won this year and 1.27 trillion won for next year to cover the possible deficit in the pension. It appears to be useless to expect the current administration to seek pension reform due mainly to a time shortage and lack of willingness by President Roh Moo-hyun and his policymakers. So we urge presidential candidates to clarify their stances on the matter without excessively reading the minds of public officials who number about one million.