French government seeks end to rail strike with 35 billion euro debt pledge

The French government said Friday that it planned to take on 35 billion euros in debt from the state railway SNCF, improving the chances of an end to nearly two months of strikes. Absorbing the debt has been a key demand from unions, and the government's decision to spell out its commitment was received positively by some trade unionists.
"This will become part of state debt and it will be paid back in the same conditions and at the same time as the state's public debt," Prime Minister Edouard Philippe told reporters. A total of 25 billion euros would be absorbed in January 2020 and another 10 billion in 2022, Philippe said, slashing the state-owned group's borrowings which currently stand at 46 billion euros (53 billion dollars).
"The issue is moving forward," said Luc Berille, head of the UNSA union, the second-biggest on the network. "There is now dialogue." All trade unions representing staff on the SNCF have backed the longest-ever rail strike sequence, which began in early April and has seen workers walk out on two days out of every five.
The conflict between centrist President Emmanuel Macron and the rail unions, a historic bastion of the labour movement, is seen as a key test of the president's resolve and ability to push through other tricky reforms, such as his plans for retirement financing.