French PM faces tough wage talks amid protests

French Prime Minister Sébastien Lecornu hosts a social conference Monday with unions and employers to address wage increases, facing pressure after weeks of protests over declining purchasing power. Official figures show real basic monthly salaries in the private sector fell 1.1% year-on-year, or about 3.3% since 2021, when adjusted for inflation. The government can only act on the minimum wage (Smic), currently at 1,477 euros net monthly, with unions demanding increases while employers warn against added costs. Economists argue the current system of employer payroll tax exemptions, which decrease as wages rise, discourages salary progression and effectively has the state subsidizing private-sector pay. Some propose deeper structural reforms, though the weakened government has limited room to maneuver.