Understanding France's Proposed Pension Reforms

• The new legislation raises the retirement age in France from 62 to 64 years.
• These changes will be implemented progressively.
• The retirement age will increase by three months each year, till the year 2030.
• Workers involved in physically or mentally demanding occupations will retain the right to early retirement.
• Starting from 2027, most workers will need to make social security contributions for 43 years instead of the current 42 years to receive a full pension.
• Drawing a parallel, the USA is also gradually increasing its retirement age to 67, while the UK plans to raise it to 68 between 2037 and 2039.

Rationale Behind the Government's Proposed Changes

• The French government asserts that the proposed reforms are necessary to control the pension budget.
• The existing pension system in France accounts for about 14% of the GDP, making it the third most expensive in the OECD , following Italy and Greece.
• According to the government's projections, the current pension system will register an annual deficit of 13.5 billion euros by 2030.

Why is there a Public Backlash Against the New Pension Reforms?

• The government's decision to invoke Article 49.3 of the Constitution to push through the reforms without a vote in the National Assembly has led to intensified protests and resulted in two unsuccessful motions of no-confidence.
• Article 49.3, which allows the government to bypass parliamentary approval, is seen as undemocratic by many.
• The protestors have resorted to various forms of protest, including strikes in public services and blockades, to draw international attention.

Looking Ahead:

• The French government must respect the country's deep-rooted constitutional values while drafting laws that have far-reaching implications for its citizens. Given France's longstanding tradition of democracy, it is imperative that the government takes into account public sentiment in its future actions.