The only way to reform is to prove the interest brought by all through reform. It may be possible …

There is no shortage of big files on reform: retirement, health, education, employment, unemployment, public funding, energy policy, fight for climate …

There is no shortage of big files on reform: retirement, health, education, employment, unemployment, public funding, energy policy, fight for climate ...

©Ludovic MARIN / AFP

Business in Atlantico

The President of the Republic did not hide his shame at the reform of French society. He is unclear on most of the big issues today: retirement, health system, education, labor law, security. Fuzzy or wary or mute.

There is no shortage of big reform files: retirement, health, education, employment, unemployment, public financing, energy policy, fight for climate, and so on. the will to reform is not lacking. The lack of an executive than a majority is because the political situation has really changed. And this change would mean ambiguity or severe caution on the part of the president.

Emmanuel Macron’s management has an obligation to the results. If he can’t do it, that won’t stop his ingenuity.

First, there are two ways to reform for political power:

-One, implement reform in an authoritarian way but that has some minor problems with democratic regimes

-Two, convince the public of the need for reform by showing the interest that can be ordered to accept. It is in our Western democracies what politicians are trying to do. But the result is not guaranteed and it takes a lot of work to get a membership.

The President of the Republic has, a priori, chosen caution, hoping that everyone will know the wall of facts to face or consider.

In pensions for example, it will re-launch a major consultation to try to mislead a consensus on the need to delay retirement age. No one is under any illusions.

In the need to respond to the impending energy crisis, the government is preparing a major communications campaign (15 million allegedly) to encourage the French to consume less fuel or electricity. Otherwise, you have to put in a ration or accept a higher price. Once again, no one has any illusions. There are the wise and those who are capable of it. And some, are less adept at paying a high price. Unbearable

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The world of insurance is taking interesting initiatives to spread in the market. In fact, he took and adapted old recipes from the economy to encourage or compel (without compulsion) insurers to act more responsibly.

In car insurance, for example, operators generalize bonus-malus. Motor insurance is mandatory, especially basic insurance, civil liability that covers damage caused by others. This obligation is respected by most drivers of four -wheeled vehicles. Police services were also empowered to control them and some of them deviated from the rule.

But insurers invented bonus-malus to encourage policyholders to behave well. If the driver has no accidents or particular problems with what he is doing, he can benefit from a bonus on his premium and this bonus is added each year to good driving. If the driver makes mistakes that make him responsible for an accident, the insurer will impose a penalty on his insurance premium.

The point license works like this. This incentive system produces its effects. It encourages the insurer or the driver of the car to behave well.

With all possible health insurance reforms, we will begin to take inspiration from bonus-malus. Health insurance can be more expensive for an individual at risk, for example for a smoker, an alcoholic or more often someone who does not protect themselves against major risks, and who does not plan. In borrower insurance, premiums obviously vary depending on the age of the borrower or the insured.

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In retirement insurance, we have to end the imagining of à la carte retirement arrangements according to the chosen retirement age, or the duration of the contributions. In addition to shifting from a pay-as-you-go system based on national integration, to a capitalization system based on individual responsibility. These formulas are not without flaws, of course, but they have the huge advantage of empowering customers or users.

Anything related to the management of inflation-threatened forces or rations, two classic remedies, which are also less popular, one can think very carefully of profit sharing systems or personal incentives. .

To reduce fuel consumption to curb rising prices and speculation, governments have sometimes, in the past, distributed ration tickets or set speed limits. At 70 KLM/hour, a car will consume 25% less fuel than 140 KLM: hour. As such, these mandatory and even relatively strict measures may be difficult to implement today.

On the other hand, the digital approach will definitely allow insurers to be more cunning.

On the highway, for example, toll operators have the possibility to know how fast cars travel between the two sections.. In return, because of the car’s engine capacity, they can also know its consumption. They can offer bonuses to those driving at medium speed and can impose penalties on those driving at high speed. In short, by modulating the motorway toll, the motorist or the carrier may have an interest in moderating his speed and therefore his consumption. This is a more acceptable way than the coercive measures officials are considering to reduce consumption.

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Electricity management can work well in the same way. EDF and all electricity distributors already consider homeless hours and peak hours with specific tariffs … but now, individual meters,the famous Linky allows you to know who is consuming what and at what time. This mass of information can be used to modulate the bill up or down depending on the tools provided.

In short, the importance of a reform is its obvious expected impact. But its outcome depends on its acceptance. To be accepted, a reform must bring guarantees of community progress, but because its effectiveness depends on individual action, reform that requires effort must bring profit or individual interest. So a government has obligations on the results. It does not, however, allow him to use every possible means, but as Machiavelli says, “it does not forbid the power to be intelligent.»

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