Nicolas Sarkozy refuses to back down as 'austerity' protests escalate

FRENCH unions last night vowed to hold fresh protests over controversial pension reforms, as President Nicolas Sarkozy refused to back down despite nationwide protests on Tuesday.

Mr Sarkozy said he was asking his government to make some amendments to the pension reform bill, but the rise in the minimum pensionable age would stay."There is no question of going back on this," he said. "Working a little longer is the most reasonable path."

However, last night. French trade unions agreed to call another day of strikes and protests on 23 September, raising the stakes in their confrontation with the government.

Union leaders warned of an escalation after strikes and marches against the rise in the minimum retirement age to 62 from 60, rallying support as fears grow about austerity measures across Europe.

Mr Sarkozy said he would ask ministers to amend the pension bill which also raises to 67 from 65 the age people can retire on full pension in a plan to balance the budget by 2018. He plans not to change the main thrust but intends to make amendments to accommodate those who work in physically challenging jobs, or who started work early in life, or who depend on many different pension schemes.

The tone of Mr Sarkozy's statement suggested he is ready to give ground on non-core issues, but is willing to face down the unions ahead of elections in 2012. The CFDT, one of the two biggest French unions, called the concessions mild and makeshift, saying Mr Sarkozy was not resolving the core problems.

The government has repeatedly said it will stand firm on what it considers the essentials. "When some people say the reform must be withdrawn - that's simply not possible," Xavier Bertrand, head of the ruling UMP party said. The government unveiled the bill in June. Without the changes, the pay-as-you-go pension system would run up annual deficits of €100 billion (82bn) by 2050, it says.

The unions say Tuesday's protests in more than 100 cities drew 2.5-2.7 million people. The official count was 1.12m. The protests and strikes halved national rail services, disrupted Metro services in Paris and led to the cancellation of a quarter of flights at Paris airports.

Franois Chereque, head of the CFDT, first floated the idea of more protests next Wednesday, the day the bill is due for a first vote in the lower house of parliament.

Another possibility was Saturday week, which could help muster more support from private sector employees reluctant to lose a day's pay.

With the government aiming to pass the reform before November, it leaves the unions little time to manoeuvre. Polls show two-thirds of voters think Sarkozy's plan is unfair, but two-thirds think strikes will make no difference. "There is no question of letting anybody distort the reform, as it would imperil the rebalancing of our pensions," Mr Sarkozy said.