French President Macron outlines response including tax cuts to months of 'yellow vest' protests

At the first major news conference on domestic policy of his presidency, Emmanuel Macron pledged to cut taxes on Thursdayand said the French would have to work longer as he outlined his response to months of anti-government protests that have shaken his authority.

Speaking in a gilded hall at the Elysee Palace, seated behind a white desk with the French tricolour and European Union flags flanking him, Macron took reporters' questions for nearly two-and-a-half hours, part of an effort to redress the rocky relationship he has developed with the media.

He apologised - not for the first time - for his sometimes sharp tongue and cutting comments, which have earned him a reputation for arrogance and contributed to a deep slump in his popularity ratings, which are showing some signs of recovery.

Almost two years into his five-year term, and following a national listening tour, the prime-time event was also Macron's attempt to quell nearly six months of 'yellow vest' protests that have brought weekly unrest to the country.

A first slate of economic measures put forward last December, and worth some 10 billion euros ($11.13 billion), failed to calm anger among lower-income workers and prompted Macron's decision to hold a "great debate" with citizens.

The 41-year-old president, a former investment banker and economy minister, said he wanted a significant cut in income taxes, saying it would be worth around 5 billion euros, financed by closing loopholes for some companies.

Macron said pension reform would be presented to cabinet this summer and that future increases in the lowest pensions would be indexed to inflation, another effort to provide lower-income workers with some succour.

Macron said he wanted to abolish the Ecole Nationale d'Administration, the elite school that trains France's corporate and political leaders, saying new ways needed to be found of recruiting top-class civil servants.

He also talked of a new push to decentralise government, breaking away from the "dirigisme" of the past, with policy decided and directed from Paris. He said changes would come within a year, including no more schools or hospitals being closed without the backing of the local mayor.

Although the number of demonstrators has declined since a peak in November, protesters clashed with police for a 23rd straight week last Saturday and the sustained unrest has had a draining effect on business, tourism and the economy.

Thursday's policy proposals are the direct result of the three-month national debate, during which Macron toured the country, literally rolling up his sleeves to discuss everything from high taxes to local democracy with groups of citizens.

Despite the criticism levelled at him, and opinion poll ratings that show his support at around 30 per cent, Macron did not pull back from any policies on Thursday, saying his government would push on with his reform drive.

The 'yellow vest' street rebellion erupted over planned diesel tax hikes last November but quickly developed into a broader backlash against inequality and a political elite perceived as having lost touch with ordinary voters.