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ÿþ<titleÿþ>ÿþNew Socialist Magazine, Le Plan Juppé - Articleÿþ</title>ÿþ

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ÿþ<bÿþ>ÿþLe Plan Juppé 

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ÿþ<iÿþ>ÿþNew Socialist Magazine, January 1996ÿþ</i>ÿþ<brÿþ>ÿþ<brÿþ>ÿþ<brÿþ>ÿþ

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Le Plan Juppé is a comprehensive attack on the organisation and provision of the major branches of France's extensive social security system: health care, family allowances, and pensions. Altogether the plan calls for cuts and new revenues of about 44 billion Francs ($12 billion) out of the 2,000 billion Francs ($560 billion) system. 

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The plan proposes that workers should pay off the system's 120 billion Francs ($33 billion) debt through a 0.5 per cent tax on incomes -- this in spite of the fact that the debt is attributable to the government's policy of reducing employers' contributions to the system. 

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Significant changes specific to the main aspects of the system include: 

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ÿþ<liÿþ>ÿþHealth care: many pensioners and unemployed workers will pay 1.2 per cent more 1996 and '97; the government will institute cost 'controls' on medical and administrative expenses, leading to massive job losses and inferior care; 

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ÿþ<liÿþ>ÿþFamily allowances: there will be no cost-of-living adjustment for family allowances next year; starting in 1997, the benefits will be subject to clawbacks (taxation) and will no longer be a universal right as they become means-tested. 

ÿþ</li>ÿþ<brÿþ>ÿþ<brÿþ>ÿþ



ÿþ<liÿþ>ÿþPensions: the plan requires public sector workers to work and contribute to the system for 40 years rather than 37.5 before they can retire with a full pension; it also reduces the size of monthly pension benefits. 

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