France to propose pension reform this year

Belgium, (Brussels Morning Newspaper) French Minister of Labour Olivier Dussopt announced on Thursday the country is planning to draft new rules to reform the pension system this year.

He noted that the government is planning to draft new rules by Christmas and added that negotiations with unions and political parties will start next month, according to Reuters reporting.

Dussopt stressed in an interview that the government wants to vote on new rules at the start of 2023 and implement them in July.

He pointed out that French President “Emmanuel Macron set a framework for a progressive rise in the retirement age to balance the pension system [budget].”

Élisabeth Borne previously noted that the planned pension reform could include moving the retirement age gradually from 62 to 65 by 2031.

Pension system reform was part of Macron’s election promises in 2017, but unions opposed initial plans and organised protests and strikes in response, which prompted Macron to put the reform on hold.

Pushback against Macron’s plan remains strong as cost of living and inflation continue to rise across the EU.

According to a poll published earlier this month, slightly more than 50% of respondents expressed belief that relaunching the pension reform this year would be a misstep.

Division on the issue is present in Macron’s party as well, which no longer hold majority in the parliament. Macron previously stressed the importance of making French people work longer and upping the retirement age.

Unions not having it

Union representative Philippe Martinez warned in an interview that more negotiations on the proposal are pointless, stressing “if this is to propose raising the retirement age, we will not stay [at the negotiating table] for long.”

If the parliament rejects Macron’s plan, the French government could use a constitutional mechanism that allows it to pass new laws even if parliament rejects them.

The last time that the French government used the mechanism was in 2016 to push through a labour reform that Macron, then serving as Minister of Economics, Industry and Digital Affairs, drew up.

Using the clause to push through controversial regulations can trigger a vote of no confidence.