New age limit planned
Macron makes new attempt for pension reform
01/10/2023, 9:00 p.m
There are currently dozens of pension schemes in France. The government wants to limit their number and relieve the coffers overall. To do this, she makes a new attempt. The previous attempt was abandoned after massive protests. For President Macron, it is about one of his central projects.
France’s government wants to raise the retirement age from 62 to 64, risking violent protests and strikes. There should be exceptions, for example for people with health problems and an early start in working life. The reform aims to ensure “balance” in the pension system in 2030, said Prime Minister Elisabeth Borne in Paris. She described it as “irresponsible” to let the deficits “continue to grow”. The government warns that the pension fund could run into a deficit of around €20 billion by 2030. For President Emmanuel Macron, the pension reform means keeping one of his most important campaign promises.
Currently, the retirement age in France is 62 years. Those who have not paid in long enough at that age to be entitled to a full pension can sometimes work longer. At the age of 67, the full pension entitlement applies regardless of the payment period – the government wants to keep this, but the number of payment years required beforehand is to increase faster than previously planned.
At the same time, the minimum pension is to rise to 1,200 euros, possibly retrospectively. A corresponding legislative proposal is to be submitted to the cabinet on January 23 via a supplementary budget for social security and passed by the summer.
42 different pension schemes
Macron had originally planned to raise the retirement age to 65. The concession could win him votes from the right-wing conservatives. Since the government camp has lost its absolute majority, his party is dependent on ad hoc coalitions. The right-wing populists from the Rassemblement National describe the reform as superfluous. They point out that the pension fund is currently showing a surplus. The left camp protests against the reform plans and describes them as antisocial. People with strenuous jobs are dependent on special rules in the pension system.
“If it is to be the most important reform for Emmanuel Macron, then it will be the most important labor dispute for us,” said Frédéric Souillot of the Force Ouvrière union. The union is likely to seek confirmation of its social role in the protests. The yellow vest protest movement had developed independently of the unions at the end of 2018 with the help of social media.
Raising the retirement age would mean a reduction in pensions for many, given the relatively small proportion of working seniors in France. The government therefore also wants to promote the employment of seniors. Companies with more than 50 employees should disclose how many seniors they employ. The government had postponed a first attempt at reform after strikes, mass protests and the Corona crisis in 2021. There are currently 42 different pension systems in France. Borne announced that he wanted to abolish most of them.
If a majority for the reform does not emerge, the Prime Minister could reapply constitutional paragraph 49.3, which allows legislation to be passed without a vote if the government survives a subsequent motion of no-confidence.