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French government reopens contentious public-sector sick-leave decree amid union protests

Executive summary: The French executive has restarted a decree to reform public-sector sick-leave granting and renewal rules. The move could increase scrutiny of sick-leave claims and affect public-sector labor costs.

Who is involved: The government, public-sector unions and the Ministry of Labour are the key actors.

Likely next: Negotiations with unions are expected, with a possible parliamentary fast-track procedure for approval.

The French executive has restarted a decree to reform public-sector sick-leave granting and renewal rules. Unions criticize the move as a shift toward a surveillance-oriented approach and question the accounting rationale. The proposal follows previous attempts to tighten eligibility criteria and comes as the government seeks to curb fiscal pressures on the welfare system.

What's next — scenarios

Fiscal Tightening Success (Base Case) (50%)

Public sector operational costs decrease as sick-leave expenditures are streamlined via stricter renewal controls.

Social Unrest & Gridlock (Downside) (30%)

Widespread public sector strikes lead to service disruptions and increased political risk for the administration.

Legislative Compromise (Upside) (20%)

The decree is watered down, maintaining fiscal targets while reducing the surveillance burden on employees.

What to watch

Timeline

Analysis — what this means

Likely next events

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