PARIS – Pension negotiations between French unions and employers have commenced with a crucial objective: to restore the retirement system’s financial balance by 2030, according to Prime Minister Francois Bayrou.
The talks aim to address concerns over the controversial 2023 pension reform, which gradually raises the retirement age from 62 to 64. The reform, widely unpopular among the public, was implemented to stabilize the pension system’s finances.
In a letter to negotiators, Bayrou emphasized the importance of achieving fiscal balance while also delivering tangible benefits for citizens. “Negotiators’ objective should be to bring the retirement system’s finances back to balance in the near future while proposing real improvements for citizens,” he stated.
The independent audit office warned last week that repealing the 2023 reform could cost France an estimated 13 billion euros. Even with the current changes, the office projects a 15 billion euro deficit by 2035 if no additional measures are implemented.
Unions are advocating for the retirement age to remain at 62, while employer federations are pushing back against any rise in payroll contributions, citing concerns over increased labor costs. Bayrou, known for his fiscal conservatism, noted that all options are on the table as long as they do not worsen the pension system’s deficit. As discussions continue, the outcome will be closely watched, given the contentious nature of pension reforms in France.