France's Government Considers Suspending 2023 Pension Reform Amid Political Pressure
France’s government contemplates suspending the divisive 2023 pension reform amid political upheaval and leadership shifts.
- • Prime Minister Sébastien Lecornu has not ruled out suspending the 2023 pension reform amid political pressure.
- • Nobel laureate Philippe Aghion called for halting the pension reform until 2027 to address social concerns.
- • Jean-Pierre Farandou’s appointment as Labor Minister positions him to manage contentious pension issues, leveraging his SNCF negotiation experience.
- • Elisabeth Borne suggested that suspending the pension reform law would require legislative changes.
Key details
Amid growing political tensions and public debate, the French government is exploring the possibility of suspending the controversial 2023 pension reform. This consideration comes as Prime Minister Sébastien Lecornu prepares a major policy declaration, and as newly appointed Labor Minister Jean-Pierre Farandou faces the challenge of managing the pension issue, critical to the government’s stability.
Prime Minister Lecornu, who is in the process of resigning, has not ruled out suspension of the pension reform, a move primarily advocated by left-wing parties and unions. Such a suspension could have significant consequences, especially regarding equality among senior citizens, as noted by Nobel laureate economist Philippe Aghion, who has called for halting the reform until 2027.
Lecornu convened a meeting with his 34 ministers at Matignon on October 13, emphasizing the need for a clear and orderly approach ahead of the upcoming budget presentation in the Council of Ministers. This gathers momentum against the backdrop of internal government adjustments, including Farandou’s appointment as Labor Minister. Farandou, formerly CEO of SNCF, is seen as a strategic choice for handling labor issues related to the reform due to his prior negotiations which eased the reform’s impact on railway workers—a move that had caused friction with the Ministry of Finance.
Farandou’s appointment raises questions about how effectively he can address the pension debates, especially given Prime Minister Elisabeth Borne’s suggestion of suspending the pension reform law, which would require legislative action. Farandou’s history within SNCF and his ministerial role are seen as pivotal for the reform’s future and for Borne’s political standing.
The opposition’s call for suspension underlines the intense political contest around the pension reform, which was a significant and contentious achievement of the current government in 2023. The decision ahead remains delicate, balancing political demands, economic considerations, and social equity.
According to these developments, the government is at a crucial juncture, weighing the suspension option amid internal and external pressures, with the positions of both Lecornu and Farandou under close scrutiny as they navigate this fraught political landscape.