French Government Suspends Pension Reform Amid Skepticism, Advances Senior Employment Measures

On October 14, 2025, the French government announced the suspension of its contentious pension reform, a move welcomed by opposition figures but met with caution and skepticism, particularly from left-wing parties. The reform, which had been adopted controversially using constitutional article 49.3, had narrowly escaped being censured. Following this suspension, Sébastien Lecornu, the Minister of the Sea now overseeing the matter, promised to expedite the legislative process to formalize the suspension with an amendment to the Social Security financing bill, ensuring a "quality debate." However, some ambiguity remains, as Labor Minister Jean-Pierre Farandou has not fully confirmed whether a distinct law will be enacted specifically to suspend the reform. Left factions, especially those allied with Jean-Luc Mélenchon, voiced concerns that incorporating the suspension within the budget bill could result in deep cuts to healthcare and pension provisions. Discussions also emerged about the retirement age that would apply when the reform resumes, projected around 2028, a development with significant potential impact on millions of French workers.

In tandem with these pension policy developments, the National Assembly definitively approved on October 15, 2025, new employment measures aimed at supporting workers aged 60 and above. The "contrat de valorisation de l’expérience" (CVE) was introduced—an innovative employment contract designed to encourage hiring seniors by offering employers greater flexibility regarding retirement timing and exemption from retirement indemnity payments. Employers can now retire employees upon reaching full pension eligibility, rather than being constrained by the previous retirement age cap of 70. The measure also includes reforms to unemployment insurance, slightly easing eligibility for new claimants, and removes limits on consecutive mandates for members of economic and social committees, addressing longstanding union demands. Labor Minister Farandou highlighted the collaborative work between unions and employers in shaping these reforms.

While the pension reform suspension reflects the government's responsive approach to public opposition, political actors remain watchful of potential government strategies. Olivier Faure of the Socialists expressed satisfaction, but right-wing voices warned against possible deception reminiscent of 2023's political tactics. The government's promise to honor the suspension faces scrutiny over economic implications and future legislative clarity. Meanwhile, employment initiatives for seniors mark a significant step toward adapting France's labor policies to demographic realities and maintaining workforce engagement among older citizens.