French Prime Minister Elisabeth Borne announced a pension system reform plan at a press conference on January 10, 2023, stating that it is necessary to avoid a deficit by 2030. According to the French government, from September 1, 2023, the retirement age will be extended by three months each year. If so, the retirement age will be 64 in 2030. In addition, the contribution period to receive 100% of the pension will be extended by one year to 43 years from 2027.
The French people are reacting negatively to this decision. There have been several large-scale protests and strikes in France over the pension reform plan decided by the government. The strikes have affected public transport, schools, hospitals, and other public services, causing significant business disruption and financial losses.
The protesters, including railway workers, teachers, and healthcare workers, argue that the new system would leave them worse off financially and could force them to work longer before retiring. They are also concerned about the government’s plan to increase the retirement age from 62 to 64 gradually. The government said it would consider expanding telecommuting as an alternative to pension reform, but the reaction of the protesters was negative. The French government has argued that the new system is necessary to ensure the long-term sustainability of the pension system, which is facing significant financial challenges due to an aging population and a decreasing birth rate. They have also stated that the new system would be fairer, more transparent, and help reduce inequalities between professions and income groups.
Pension reform is a highly contentious issue in France, with many deeply held opinions on both sides. While the strikes and protests have caused significant disruption, they have also demonstrated the strength of public opposition to the proposed changes. It remains to be seen whether the government will be able to push through the reform or need to make further concessions to address the protesters’ concerns.
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