The Juppé Plan and the Future of the French Social Welfare System

Abstract

The Juppé Plan, enacted on 15 November 1995, is the most important reform of the French social protection system (SWS) since its creation in October 1945. First, we describe the French system which is inspired by the Bismarckian model, a work-based model, and its long-term trends in terms of benefits and contributions.Second, we describe the decisions made as part of the Juppé Plan, and their gradual implementation under the Juppé and Jospan governments: more planned care provision in the health-care sector; a set of family policies geared more to those most in need; the introduction of private pensions in a new funded scheme; and above all the introduction of new, more universal mechanisms of funding social security. A project on social cohesion (fight against social exclusion) has also been added to the plan.Third, we analyse the three main consequences of the Juppé Plan: the end of the doctrinal unity of the French system; the economic and financing uncertainties surrounding the implementation of the reforms ; and the political confusion which largely explains why the new left-wing Jospin government can carry on with the implementation of the reform . Resum6Le plan Juppé présenté le 1 S Novembre 1995 au Parlement, est la riforme la plus importante du système franvais de protection sociale depuis sa creation (Octobre 1945). Nous commenvons par une brève prgsentation du système franvais qui s'inspire du modèle Bismarkien fondi sur les droits sociaux du travailleur, et une présentation de l'evolutaon long terme des dipenses et moyens de financement. Ensuite nous dgcrivons les principes et les mesures dgcidis par le premier ministre A. Juppé et leur mise en œuvre sous les governements Juppé et Jospin: secteur hospitalier et mgdical plus planifié, politique familiale Orientée vers les m6nages les plus disfavorisés, mécanismes de sécurtté sociale plus universels. Le plan a 6t6 complete par un projet sur la cohesion sociale.Ceci permet enfin d'analyser trois grandes consgquences de la réforme, la fin de l'unite doctrinale du système fran~ais, les incertitudes gconomiques et financieres de la réforme, et la confusion politique des décistons de A. Juppé qui explique largement que le nouveau governement Jospin puisse contmuer la mise en œuvre de la r6forme.

The search for the Holy Grail: combining decentralised planning and contracting mechanisms in the French health care system

“…The financing source was shifted partially from payroll contributions to a general tax based on people's total income. The aims were first to widen the General Social Tax base, which was expected to compensate for the decrease in payroll tax which had occurred due to the high level of unemployment and to the dwindling active population, secondly, to contribute to reducing the public deficit, and thirdly, to improve both the consistency and the efficiency of the 'Social Security' system, thus making it fairer [6]. Since 1998, the earmarked General Social Tax levied on income at a rate of 5.25% has replaced most of the previous employees' contributions to the social health insurance funds.…”

The Silver Age of the Welfare State: Perspectives on Resilience

“…In 1995, the new Juppé government sought to impose this scheme on statesector workers without negotiation, confident in the strength of its parliamentary majority and possession of the presidency. Massive protests culminating in a national rail strike forced a government retreat and the measure was not reintroduced (Bouget, 1998). New legislation in 1997, designed to encourage the growth of private pensions through tax incentives, was blocked by the incoming Jospin government.…”

The Reform of Bismarckian Pension Systems : A Comparison of Pension Politics in Austria, France, Germany, Italy and Sweden

“…In fact, large sections of the CFDT basis did not understand how a leftist trade union could support the decision of a conservative government. As a consequence, the CFDT leadership proved unable to resist the demands for action raised by its more militant basis and hence closed ranks with the other trade unions, which henceforth formed a unified front vis-à-vis the government (Bouget 1998;Vail 1999). perception that the envisaged reform of public sector pensions was the most controversial issue of his reform package, Juppé on 10 December rescinded this reform element while largely maintaining the other components of the plan, including the measures aimed at increasing government's control over social security.…”

“…In fact, Juppé changed his mind on the night before the publication of the plan. In response to the pressure by his predecessor and his fellow party member, Edouard Balladur, who demanded a tighter stance in fiscal policy, Juppé finally decided to incorporate the pension issue in his reform plan (Pitruzello 1997;Bouget 1998;Vail 1999;Bonoli 2000).…”