France raises minimum wage in response to cost of living protests

⑴ French Prime Minister Le Cornu stated that the government will raise the minimum wage in response to public protests over rising living costs, while also seeking to avoid further increasing the burden on fragile public finances. ⑵ After meeting with unions and employers' organizations on Monday, Le Cornu announced that from December 1, the monthly post-tax minimum wage for full-time employees will be increased by 1.6% to 1,502 euros. ⑶ Le Cornu said this is not only a welcome income boost, but not merely a symbolic gesture, as it will be the second largest minimum wage increase in 20 years. ⑷ France's minority government is facing pressure from student demonstrations, which have expanded into broader public discontent over rising living costs. ⑸ Some violent incidents occurred during certain marches, including the robbery and unrest on October 17, but the number of protest participants declined last Saturday. ⑹ Le Cornu's government has very little leeway in responding to demands for increased public spending, as it was already struggling to control its considerable budget deficit and lacks a majority in parliament, with less than six months to go before the presidential election. ⑺ The situation has worried investors, leading to a sell-off in French bonds in recent months and pushing up the government's borrowing costs.