Macron Considers Referendum on Points-Based Pension Reform, Says Nobel Laureate Aghion

Philippe Aghion, Nobel laureate in economics, revealed on October 16 that President Emmanuel Macron is contemplating a referendum on transitioning to a points-based pension system in France. This system, previously considered during Macron's first term, would convert every euro contributed by workers into points, which collectively determine their retirement benefits. Aghion highlighted that this model promotes equality, as all workers accumulate points equally, and could bypass the politically sensitive issue of raising the legal retirement age — a topic he described as a "taboo" causing public anxiety.

The Secretary General of the CFDT, Marylise Léon, also voiced support for reopening discussions on this pension reform. She emphasized the system's fairness and flexibility, allowing individuals to decide their retirement age based on the pension amount they wish to receive. Originally proposed in 2019, the points system initiative was halted in 2020 but now appears poised for reconsideration.

Aghion, who has advised Macron since 2007, noted his complex relationship with the president, balancing personal friendship with candid critique where necessary. He underscored that the referendum could provide a democratic means for the French population to choose the future of their pension system.

This potential referendum emerges amidst ongoing debate about France's pension system and efforts to find a sustainable reform that ensures equality and social acceptance. The discussion reflects broader challenges France faces in pension financing and economic policy reform, with a focus on innovation and fairness.

In summary, the French government, influenced by economic experts like Aghion, may soon present the public with a direct vote on adopting the points-based pension formula, marking a significant moment in the country's pension reform debate.