ASSESSMENTS
The Yellow Vests Set Paris on a Delicate Path to Reform
Mar 7, 2019 | 10:00 GMT
(ZAKARIA ABDELKAFI/AFP/Getty Images)
Highlights
- In the coming months, Paris will seek a balance between pushing ahead with its reform agenda and maintaining a lid on more extreme social unrest.
- As a result, the French government is likely to scale down or postpone some of its original plans.
- Slowing economic growth and a worsening deficit will reduce the room for Paris to honor its promises to lower taxes, while circumstances might also force the government to introduce unpopular spending cuts.
- While the French government has flirted with the idea of a referendum on reforms, it would only be a last-resort decision, considering the high risks associated with holding a vote at a time of popular discontent.
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