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To quell unrest, France's Macron speeds up tax cuts but vows no U-turn

Updated: 2018-12-11 06:00
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French President Emmanuel Macron meets with representatives of trade unions, employers' organizations and local elected officials at the Elysee Palace in Paris, France, Dec 10, 2018. [Photo/IC]

* Macron addresses nation after weeks of violence

* Offers tax cuts for pensioners, wage hikes for low-paid

* Refuses to reinstate wealth tax

PARIS - France's President Emmanuel Macron on Monday announced wage rises for the poorest workers and tax cuts for pensioners in further concessions meant to defuse weeks of often violent protests that have challenged his authority.

In his first national address following France's worst unrest for years, Macron sought to restore calm and struck a humble tone after accusations his governing style and economic policies were fracturing the country.

But he refused to reinstate a wealth tax and to back down on his reform agenda, which he said would proceed in 2019 with overhauls of pensions, unemployment benefits and public expenditures.

"We will respond to the economic and social urgency with strong measures, by cutting taxes more rapidly, by keeping our spending under control, but not with U-turns," Macron said in the 13-minute TV address from the Elysee Palace.

His response came 48 hours after protesters fought street battles with riot police, torching cars and looting shops - the fourth weekend of protests for the so-called "yellow vest" movement which started as a revolt against high fuel costs.

In measures that are likely to cost billions to state coffers, Macron said people on the minimum wage would see their salaries rise by 100 euros ($113.76) a month in 2019 without extra costs to employers.

His labour minister said this would be achieved by government topping up small salaries.

Pensioners earning less than 2,000 euros per month will see this year's increase in social security taxes scrapped, Macron said, going back on a measure that had particularly hurt his popularity with older voters.

"The effort we asked for was too big and was not fair."

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