Benzinga - A plan by French President Emmanuel Macron to raise the retirement age from 62 to 64 is causing protesters to wreak havoc in the Parisian headquarters of companies synonymous with wealth.
On Thursday, protesters stormed the headquarters of LVMH Moët Hennessy Louis Vuitton (OTC:LVMUY), the French conglomerate behind 75 luxury brands including Tiffany & Co., Christian Dior, Givenchy, Kenzo, Sephora, TAG Heuer and Bulgari.
Protesters entered the LVMH by the dozens with protest flares in hand, reported Bloomberg. Working class protesters, who are on the verge of losing state benefits, are enraged at a time when LVMH stock has rallied, making its CEO and founder the richest person on earth.
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LVMH stock reached an all-time high on Thursday, as the company posted a whopping 17% year-over-year growth for the first quarter of 2023, to 21 billion euros ($23 billion).
Protests Lay France’s Divisions Bare: LVMH founder, chair and CEO Bernard Arnault is the world's wealthiest person, with a wealth of between $198 billion and $238 billion, depending on the source.
Shares were up 3% on Thursday, 8.6% in the last five days and 17% in the last month. Arnault still controls about half of the total stake in LVMH.
Last week, about 100 protesters, including various heads of French labor unions, stormed the French headquarters of BlackRock Inc. (NYSE:BLK), the world’s largest asset manager.
The struggles that sprouted from an attempt to raise the age of retirement in the world's seventh largest economy could be a window into the future of other developed nations, where changes in demographics are challenging a decades-long ability to maintain retirement and pension programs.
A reduction in a social benefit program in one of the world's wealthiest nations — and one known for a historically strong welfare state — amid the whopping financial success of the world's largest luxury conglomerate speak to a widening wealth gap.
Macron’s Retirement Proposal: Macron's government argues that raising the age at which French residents can access a full pension is the only way to prevent the pension system from falling into deficit. A highly unpopular measure allowed the president to skip a parliament vote on this issue through the wielding of a special presidential power.
Labor unions and other protesters argue that the measure hurts the most vulnerable sectors the most, and that the money to fund the pension system should come from increasing taxation on companies and wealthy individuals.
“You’re looking for money to finance pensions? Take it from the pockets of billionaires,” said Sud Rail union leader Fabien Villedieu.
A Constitutional Council will deliver its verdict on the issue of raising the pension age on Friday. Far-right opposition leader Marine Le Pen, who's against the age change, was quoted by Reuters saying she's not optimistic about the ruling.
Macron is under siege, not only by working class sectors of French society, but also by other European politicians and members of the U.S. political sphere, for recent statements in which he called for more European autonomy and reduced dependence on the U.S. dollar.
He said France and other European countries should not become vassals in the conflict rising between the U.S. and China over the sovereignty of Taiwan.
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