He wants the French to work longer. Good luck with that
The centrepiece is a raising of the legal retirement age from 62 to 64, by 2030. This measure is deeply unpopular with the, but in line with Mr Macron’s campaign promise ahead of his re-election in April 2022. Ms Borne’s package includes an increase of €100 a month to €1,200 for the minimum state pension, which is paid to those who have made the required contributions over a lifetime.
The reform is overdue. Mr Macron has been promising it since he was first elected, in 2017. Endless consultations, mixed messaging and a failure to build a consensus around a previous version, in 2019, led to the longest period of strikes that France has seen since the uprising of 1968. Mr Macron’s first attempt was finally shelved when covid-19 struck in 2020.
average. By 2030, according to Bruno Le Maire, the finance minister, the deficit in the French pensions system will reach €14bn. The new measures should comfortably close that gap. “Given the current environment of upward pressure on interest rates, this pension reform is an important message to investors,” says Ludovic Subran, chief economist at Allianz, an insurer.
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