Macron's disappointing record on poverty

LeMonde

10 hours ago

As early as 2018, French President Emmanuel Macron launched an ambitious plan, vowing to eradicate poverty within the following few years. Now, as the end of his second term approaches, the results remain deeply disappointing. After stagnating at a high level for years, the scourge has started to rise again, according to figures released by France's national statistics agency (INSEE) on Monday, July 7, as part of its annual study for 2023. The poverty rate in France is the highest it has been in 30 years. This marks the failure of a policy that did not address the structural roots of a phenomenon that is undermining the country's social cohesion.
While the "whatever it takes" economic approach implemented after the Covid-19 crisis prevented poverty from soaring, it was not sufficiently targeted and did not offer lasting protection to those affected. Even worse, the poverty rate has risen sharply to 15.4% since the end of support measures designed to cushion the effects of inflation, with 650,000 more people falling into poverty in just one year.
This trend is not the result of the country's overall impoverishment, but rather stems from a decline among the most vulnerable, who have been hit harder by inflation. Despite France having one of the highest levels of income redistribution in the world, inequality has increased. While the standard of living for the wealthiest 10% has grown, it has fallen for the poorest 10%, further widening the gap. INSEE observed that the situation now resembles that of the 1970s.
This worsening poverty rate is especially concerning given that the country's economy is still growing, albeit slowly, and unemployment remains relatively low despite a slight increase recently. Unlike in previous periods, improvements in employment have not reduced poverty. A person leaving unemployment in 2023 was not guaranteed an improvement in living conditions. The number of working people remaining in poverty has increased due to a rise in involuntary part-time work and self-employment, both of which often fail to provide sufficient income to lift individuals out of poverty. Furthermore, the 2021 unemployment insurance reform led to a higher poverty rate among the unemployed by tightening eligibility.
The recent simplification of the aid payment process – at a time when nearly one-third of eligible recipients do not apply – is a step in the right direction, but does not address the structural causes of poverty. Tackling poverty at its root requires a focus on prevention rather than merely repairing social damage after the fact. That involves adopting long-term strategies to address school dropout rates, health disparities, and inadequate housing.
On July 3, representatives of solidarity groups met with France's Prime Minister François Bayrou, who pledged to set a target for poverty reduction as required by a 2008 law. Such an objective, however, must be backed by a bold strategy that addresses the many factors behind poverty and commits to sustained investment. Given the current budgetary situation and the lack of a majority in the Assemblée Nationale, this ambition risks fizzling out, much like the president's unfulfilled promises from seven years ago.