France strikes cost three billion euros

President Nicolas Sarkozy’s government warned yesterday that strikes against pension reform have cost the French economy up to three billion euros.

In a tactical victory for Mr Sarkozy, workers at three of France’s refineries voted to return to work and police were able to clear protesters blocking all 219 fuel depots not attached to the nine refining sites still on strike.

In a possible sign of further easing, the FO union said it would recommend that its members vote to end a rubbish collection strike in Marseille where 10,000 tonnes of refuse is lying uncollected.

“The movement is not over but we’re taking into account a particular cleanliness situation,” said the FO’s Elie-Claude Argy, citing “security and sanitary” reasons.

Lawmakers are expected to sign a Bill increasing the retirement age from 60 to 62 this week but trade unions have called another strike for Thursday and ongoing protests around the country have triggered fuel shortages.

Speaking to Europe 1 radio, Finance Minister Christine Lagarde estimated that the strikes were costing the economy between €200 and €400 million per day. An official in her ministry told the pro-government daily Le Figaro that this figure applies to each in a series of eight one-day stoppages, for a total bill of €1.6 to €3.2 billion.

Ms Lagarde also warned that images broadcast around the world of demonstrators clashing with riot police and of industrial sites blocked by protesters had cost France dear in terms of its international image for investors.

The Senate approved Mr Sarkozy’s fiercely-contested Pensions Bill on Friday and the versions passed by the lower and upper house were reconciled yesterday, opening the way for it to be formally voted into law by tomorrow.

Mr Sarkozy’s supporters hoped that the near-inevitability of the law passing, and the advent of this week’s half-term school holidays, would see the protest movement begin to fade away over the coming days.

But trade unions remain defiant and have called more strikes and rallies.

Students today plan to hold a day of protests at their universities and on Thursday labour leaders have called for their ninth one-day stoppage.