Thousands March in France to Protest Sarkozy’s Economic Plan

[Purveyor]

By Sandrine Rastello

March 19 (Bloomberg) -- Hundreds of thousands of people marched in cities across France after unions called for a second general strike in two months to protest President Nicolas Sarkozy’s “inadequate” response to the economic slump.

Civil servants and employees from the private sector demonstrated in cities from Paris and Toulouse to Marseille. France’s eight main unions say Sarkozy, who offered 2.6 billion euros ($3.5 billion) in tax cuts and aid to low-paid workers and the unemployed after a similar protest on Jan. 29, isn’t doing enough to counter rising unemployment and boost incomes.

Finance Minister Christine Lagarde expects the economy to shrink 1.5 percent this year, after French companies shed the most jobs in 40 years in the fourth quarter and manufacturing slumped amid the worst recession since World War II. The government, which predicts its budget deficit will swell this year to 5.6 percent of gross domestic product, has said it’s not ready to spend more.

If the government says “‘we won’t change anything,’ there will be other protests,” Bernard Thibault, general secretary of the Confederation Generale du Travail, the country’s second- largest union, told reporters. “It should come as no surprise if the climate gets tougher.”

Protestors marched in the Mediterranean port city of Marseille and in Lyon earlier in the day, with the main demonstration taking place in Paris in the afternoon. The police put the number of protesters in Paris at 85,000, more than in January. The CGT union says 350,000 are taking part.

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