French National Assembly Suspends Pension Reform Amid Political Divisions and Financial Concerns

In a significant political development, the French National Assembly has adopted Article 45 bis, effectively suspending the controversial pension reform originally proposed by former Prime Minister Élisabeth Borne. This reform sought to gradually raise the legal retirement age from 62 to 64 but will now be on hold until January 2028.

The suspension was passed with a majority of 255 votes in favor against 146 opposing, reflecting a complex political landscape. Support largely came from the Socialist Party (PS), Ecologists, National Rally (RN), and some minor groups, while the left-wing La France Insoumise (LFI) and the Communists opposed the measure, viewing it as merely a delay rather than a repeal. The ruling party Ensemble pour la République displayed notable abstentions, highlighting internal divisions.

This move was a strategic concession by the government to avoid a vote of no confidence against Minister Sébastien Lecornu, a close ally of President Emmanuel Macron, facilitating ongoing negotiations with left-wing factions ahead of upcoming budget discussions. However, the far-left Insoumis party criticized the suspension as a socialist compromise and has vowed to push for full repeal during their parliamentary niche on November 27.

Financially, the suspension is projected to cost the French government an estimated €300 million in 2026 and €1.9 billion in 2027. This increased expenditure heightens concerns about Social Security deficits already strained by the rejection of another budgetary measure – the freeze on pensions and social minima – by a majority in the Assembly. The rejection of this freeze, intended to save €3.6 billion in 2026, sparked sharp criticism, with opponents labeling it "social violence." Prime Minister Lecornu has signaled openness to amendments that might mitigate pension freezes.

Meanwhile, alternative ideas for pension reform are being debated. Gabriel Attal, leader of the Macronist deputies, advocates for a comprehensive overhaul including the introduction of a capitalization system with proposals such as a €1,000 deposit at birth per child, supporting those with limited tax contributions.

As France grapples with this contentious issue, the pension reform debate remains poised to influence political dynamics deeply and could be a major topic in the upcoming 2027 presidential election cycle.