Pension age hike "untouchable" in France debate

PARIS (Reuters) - The French government will consider changes to details of its pension reform proposals but will not back down from the basic plan to raise the retirement age, top advisers to President Nicolas Sarkozy said on Sunday.

Trade unions plan nationwide strikes on Tuesday when parliament begins debating the unpopular reform plans, which involve raising the pension age from 60 to 62.

"Nothing is absolutely untouchable except for (the plan to raise) the retirement age. But I don't think we will budge on that because the impact is extremely significant," Sarkozy special adviser Henri Guaino said on iTele television.

Other details of the proposals, including taking into account physically demanding work and women's different career paths, would be up for debate.

"I don't believe that we can move much on the major variables of the retirement reform project," he added.

Sarkozy's Chief of staff Claude Gueant earlier told Europe 1 radio that Labour Minister Eric Woerth would discuss new proposals on details of the reforms during debate in parliament, but the basic plan to raise the retirement age was set in stone.

"It is clear that the basis of the reform cannot change. This reform is absolutely necessary for an extremely simple reason that I think French people understand: people are living fifteen years longer than when the pension system was set up."

STRIKE IMPACT

Seven unions, including the powerful CGT and CFDT, have jointly called for nationwide strikes and street protests on Tuesday when the National Assembly, France's lower house of parliament, begins debating the pension reforms.

Some unions are calling for a 24-hour shutdown from 8 p.m. (7 p.m. British time) on Monday. Strikes are expected to disrupt schools, transport and telecommunications.

Unions expect around 2 million people to take part on Tuesday. A lower turnout would be seen as a sign of failure.

State railway SNCF said about 40 percent of high-speed TGV trains would run and regional trains would face varying degrees of disruption. Eurostar traffic to London would run normally, as would 80 percent of Thalys trains which include Brussels services.

The government unveiled its plans in June to overhaul the pay-as-you-go pensions system and clean up state finances, saying that without major changes, the system would run up annual deficits of 50 billion euros (41.7 billion pounds) by 2020.

Sarkozy himself has expressed his determination to complete the reforms: "I will not be the president of the Republic who leaves without having balanced the pension system," he told factory workers on Friday. "I am extremely determined."

On Saturday tens of thousands of protesters representing human rights groups, unions and left-wing political parties rallied in Paris and across France to denounce security measures including the expulsion of many Roma from France.

Sarkozy has said he will reshuffle his cabinet after parliament votes on the reforms, a move that would bring in fresh blood ahead of presidential elections in 2012.

Gueant said Sarkozy had yet to decide whether Prime Minister Francois Fillon will keep his post in the reshuffle, which he said would probably take place in November, rather than October as previously planned.

"Of course the question comes up but I am not able to answer, and between you and me I think that today, the president would not be able to answer either," Gueant said. "It has not been decided."

(Editing by Peter Graff)

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