France’s New Pension Reform
2023.01.10 03:45
France’s New Pension Reform
By Ray Johnson
Budrigannews.com – On Tuesday, French Prime Minister Elisabeth Borne will present the specifics of a pension reform that is already causing outrage among unions and a large majority of voters. This will be a significant test for President Emmanuel Macron’s capacity to bring about change.
It is abundantly clear: The French will be required to work harder than they are currently.
The government would most likely raise the retirement age from the current 62 to 64. Macron had originally planned on 65, but giving up one year will make it easier for parliament to approve the reform.
Another certainty: Unions and the government are going to fight each other. The moderate and reform-minded CFDT, as well as all of them, have stated that they oppose raising the retirement age.
They don’t really care if you’re 64 or 65. Neither option works.
However, another group, the conservative Les Republicains (LR), places a premium on the age target. The reform in parliament, where Macron lost his outright majority last year, will be decided by how its lawmakers vote.
LR may have lost a lot of MPs in the election last year, but their MPs, along with some allies from the center-right and Macron’s centrist group, would be enough to pass the reform.
In addition, the new head of LR, Eric Ciotti, stated that he would support the reform if his requirements were met, which included raising the minimum pension for everyone rather than just new retirees and raising the retirement age to 64 rather than 65.
However, not everybody in his party is in agreement, so there is still some uncertainty.
However, it appears that the streets will present the greatest obstacle at this point.
It is uncertain whether the unions will be able to mobilize a sufficient number of individuals who are dissatisfied not only with the pension reform but also with issues such as the cost-of-living crisis to halt Macron’s plans.
Pension reform is always a highly contentious issue in France, where the right to retire on a full pension at 62 is cherished, and it is even more so now that social discontent over the cost of living is growing.
According to the Organization for Economic Cooperation and Development, France has one of the lowest retirement ages in the industrialized world and devotes nearly 14% of its economic output to pensions, more than any other nation.
However, polls indicate that pension reform is unpopular.
According to a recent Elabe poll conducted for BFM TV, only 27% of voters support raising the retirement age, with the majority favoring 64 rather than 65. Some 47% want the retirement age to stay the same, while 25% want to retire earlier than now.
As the government rushed to contain the COVID outbreak and save the economy, Macron was forced to put off his first attempt at pension reform in 2020.
Even though recent strikes have only affected a few industries, like airlines and refineries, protests against pension reform could easily spread.
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However, government spokesperson Olivier Veran stated, We are not reforming pensions for popularity but rather for accountability. Because it is the only way our social model can continue, we will go all the way.”
