French Prime Minister Francois Bayrou has offered concessions on pension reform in an effort to win over left-wing lawmakers and secure support for the 2025 budget. The move comes as France’s growing debt pile poses a significant threat to future generations, with Bayrou warning that it is a “sword of Damocles” hanging over their heads.
Bayrou proposed entrusting trade unions and employers’ groups with a three-month mission to find a new deal on pension reform, with the aim of proposing a financially balanced agreement. The minimum age for drawing a full pension has been a contentious issue, but Bayrou has indicated that it should not be a taboo topic.
The concessions are part of a broader effort by Bayrou’s minority government to secure assurances from opposition parties and avoid a no-confidence motion. The Socialists have made concessions on the 2023 pension reform in return for support, while far-right lawmakers have rejected the idea of a no-confidence motion.
Bayrou faces high stakes as he navigates the complex web of French politics. He must balance the demands of his left-wing allies with the concerns of conservative and centrist lawmakers who fear the economic cost of any pensions compromise.
The proposal is a significant shift for Bayrou, who had earlier assured fellow centrist and centre-right lawmakers that he was ruling out repealing or suspending the 2023 pension reform. The outcome will have significant implications for France’s public finances and its relationship with ratings agencies and financial investors.
Source: https://www.reuters.com/world/europe/french-pms-concessions-pensions-eyed-key-policy-speech-2025-01-14