5 minutes to understand what's going on with French pensions

"Pension reform - the subject of a six-year political battle and the biggest strikes since 1968 - came roaring backing in the headlines in France this week with the announcement of a suspension of Emmanuel Macron's hated changes. Like a ghost from 2023, French pension reform is back in the news with the announcement from Prime Minister Sébastien Lecornu that the reform will be suspended in order to try an ensure the survival of the government."

"What happened? On Tuesday, prime minister Sébastien Lecornu announced that the 2023 pension reform - the headline measure of which was raising the retirement age from 62 to 64 - would be suspended until 2027. The reform, as passed in 2023, was a progressive one, gradually raising the standard retirement age from 62 to 64 over a period of several years. The suspension means that changes that have already been made will not be reversed, but the later stages of the reform will not be implemented on the planned timetable."

"Why did Lecornu do this? In brief, to save his political skin (and that of his boss, president Emmanuel Macron). The delicate balance in the deadlocked French parliament gives the centre-left Parti Socialiste a swing vote which could decide whether Lecornu's current government survives. As a quid pro quo for their support, PS leaders demanded a suspension of the pension reform. The collapse of another government would almost certainly lead to fresh parliamentary elections and would place growing pressure on Macron himself to resign before the end of his term in 2027. A collapse would also leave the country without a 2026 Budget, something that is even more important than normal as France's deficit continues to spiral."

Prime Minister Sébastien Lecornu announced suspension of the 2023 pension reform until 2027, pausing later stages of a plan to raise the retirement age from 62 to 64. Changes already enacted will remain in place but further scheduled increases will not proceed on the planned timetable. The suspension was secured as a political concession to the centre-left Parti Socialiste, whose swing vote is critical to the government's survival. The move aims to avoid government collapse, prevent fresh parliamentary elections, and ensure passage of the 2026 budget amid a widening national deficit. Macron and Lecornu portray the pause as necessary to stabilize the government.

Read at The Local France