Belgium, (Brussels Morning Newspaper) The French government has proposed a new retirement plan. According to what Prime Minister Elisabeth Borne has in mind for french workers, the retirement age would be raised gradually by three months a year, starting this September. By 2030. it would reach the target age of 64, compared to the current 62.
There are further changes proposed. At this moment, a full pension requires working for 42 years. As of 2027, it would require a year more. For new retirees, there would be a guaranteed minimum income, in the amount of at least 85% of the minimum wage. As things are right now, that is around 1.200 euros. Certain categories where work is considered physically or mentally difficult will be able to retire early. Various benefits and special regimes are proposed for rail, gas, and electricity workers, among others, as well.
French budget, as Ms. Borne noted, is faced with big deficits in the pension system and it would be “irresponsible to do nothing about it”. As she mentioned, that would even lead to an immense increase in taxes. The official Paris mentioned one other upside to this plan – by the year 2030, there would be more than 17 billion euros of savings in the budget annually.
“We need to change the way we look at seniors. We cannot deprive ourselves of their skills and experience. Companies must make a commitment to promote their employment at the end of their career. We will also facilitate phased retirements”, said prime minister Borne.
Pension reform was one of the key promises President Emmanuel Macron made when he was elected in 2017. After several turbulent years that followed, many now wonder if the time for keeping that promise has finally come.
NOT EVERYONE IS HAPPY WITH THE PLAN
The vast majority of the population doesn’t like the idea of retiring two years later than they have to now – recent polls indicate. The unions, as expected, voiced their disapproval. In their opinion, the government’s plan is unfair and it would be hurtful in particular to those who started working early and would suffer from the proposed changes. A strike is announced on January 19th and unions say it will be just the start of numerous measures to force official Paris to give up on this retiring plan.
French Parliament is scheduled to discuss the new plan in February. The government is up for a challenge, having in mind they don’t have an absolute majority and certain political forces from the left and from the right already opposed the plan.
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