France Suspends Pension Reform, Macron Reveals Delay in Retirement Age Policy
The French government has officially suspended the pension reform, which aimed to raise the retirement age to 64, as announced in a special social security budget bill. The suspension, confirmed during a ministerial council led by President Emmanuel Macron from Brussels, will delay the implementation of the reform until January 2028, costing approximately 1.4 billion euros in 2027. The decision was justified by the government as a move to ensure transparency and a fair parliamentary debate, with the suspension allowing thousands of workers to retire earlier while ceasing social contributions, thereby increasing public expenditure and reducing revenue. Critics, including unions and opposition parties, have denounced the measure, arguing that it unfairly burdens retirees by increasing the contribution rate for supplementary health organizations from 2.05% to 2.25% in 2026 and raising the under-indexation of pensions to inflation by an additional 0.5 points in 2027. Opponents also see this as a betrayal of promises to freeze pensions in 2026 to control public spending. Amidst political controversy, President Macron unexpectedly contradicted the government’s stance by declaring that the reform is only 'postponed,' not suspended or abolished, which has caused confusion and unrest among political factions. Macron’s statement effectively reopens the debate on the pension reforms, with opposition leaders and unions criticizing the move and warning of potential protests. The political fallout has intensified, with left-wing parties, including La France Insoumise and the Socialist Party, accusing Macron of misleading the public. The opposition fears that the delay will not prevent the reform but merely postpone the inevitable, maintaining pressure for further protests and parliamentary scrutiny. Macron’s sudden shift and the government’s financial adjustments highlight ongoing tensions over pension policy and fiscal management in France.
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