Controversial French reform bill one step away from becoming law

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Paris, France -- After weeks of protests that brought millions of demonstrators to the streets, a controversial French pension reform bill could become law Wednesday.

The French Senate gave its final approval to the bill Tuesday, passing it 177-151 despite the nationwide protests.

The lower house of parliament is due to vote on the bill Wednesday, the last legislative hurdle before the package becomes law.

The package would raise the retirement age from 60 to 62, among other measures, which the government said are necessary because the current system is unaffordable.

Demonstrations took place Tuesday at four universities around the country, the Ministry of Education said. Most universities are in vacation this week.

As the final vote looms, the country's finance minister said she doesn't expect ongoing strikes to cause a significant blow to France's growth forecast for this year.

"There are no winners and no losers in this affair. What is important is to take responsibility, to realize that the economy needs to keep going," Finance Minister Christine Lagarde told French radio station Radio Classique on Tuesday. "I do not deny that we've had several days where there has clearly been an economic impact. I don't think it's enough to change our growth forecast for the entire year."

A spokesman for the Ministry of Finance said France's expected increase in gross domestic product for 2010 is 1.6 percent, a level that has held steady since August.

French workers staged a series of rolling strikes and demonstrations this month and in September.

Lagarde has said the country cannot continue to pay its debts -- to retirees and others -- by borrowing at current levels. The government has announced a goal to cut the deficit from 8 percent to 6 percent of GDP by next year, an ambitious goal.

Six major French unions have called for further nationwide demonstrations on Thursday and November 6, saying that protests so far show the people are ready to dig in for the long haul.
 
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