Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


By Caroline Pailliez and Leigh Thomas

PARIS (Reuters) – French Prime Minister Elisabeth Borne on Tuesday will unveil the details of a pension reform that is already angering unions and a large majority of voters and will be a key test of President Emmanuel Macron’s ability to implement change.

One thing is clear: The French will have to work longer than they do now.

The most likely scenario would see the government raising the retirement age to 64 from 62 currently. Macron initially banked on 65, but giving up one year will make it easier to get the reform adopted in parliament.

What is also certain: The government is heading for a clash with labour unions. All of them, including the moderate, reform-minded CFDT have said they reject increasing the retirement age.

For them 64 or 65 doesn’t matter much. Either is a no-go.

But the age target is key for another group — the conservative Les Republicains (LR). How its lawmakers vote will make or break the reform in parliament, where Macron lost his outright majority last year.

LR may have lost a lot of MPs in last year’s election, but their MPs, plus some centre-right allies, added to Macron’s centrist group, would be enough to push the reform through.

And LR’s new chief Eric Ciotti said he would back the reform – if his conditions are met, including increasing the retirement age to 64 rather than 65 and bumping up the minimum pension for all, rather than only for new retirees.

Not all in his party agree, however, so there is still some uncertainty.

But at this stage it seems the biggest challenge will be in the streets.

It’s unclear whether the unions can gather enough people, angry not only with the pension reform but also with issues including a cost-of-living crisis, to derail Macron’s plans.


Pension reform in France, where the right to retire on a full pension at 62 is deeply cherished, is always a highly sensitive issue and even more so now with social discontent mounting over the cost of living.

With currently one of the lowest retirement ages in the industrialised world, France spends more than most other countries on pensions at nearly 14% of economic output, according to the Organisation for Economic Cooperation and Development.

But polls show pension reform is unpopular.

Only 27% of voters agree with increasing the retirement age – most of whom back 64 and not 65 – an Elabe poll for BFM TV showed last week. Some 47% want no change to the retirement age and 25% want retirement to be earlier than now.

Macron had to put his first pension reform bid on ice in 2020 as the government rushed to contain the COVID outbreak and save the economy.

Now, although recent strike action has been limited to specific sectors, such as refineries and airlines, outrage over pension reform could easily spark broader protests.

But government spokesman Olivier Veran said: “We’re not reforming pensions to be popular but to be responsible. We’ll go all the way because it’s the only way our social model can survive.


(Reporting by Elizabeth Pineau, Leigh Thomas, Caroline Pailliez; writing by Ingrid Melander, Editing by William Maclean)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts