Nobel Laureate Philippe Aghion Urges Negotiated Suspension of Pension Reform to Avert Political Instability

Philippe Aghion, Nobel Prize-winning economist, has called for a negotiated suspension of France's pension reform to prevent the far-right Rassemblement national (RN) from gaining power. Speaking on France Inter, Aghion stressed the importance of reaching an agreement between the government and the Socialist Party, suggesting that conceding a pause in the reform is crucial to safeguarding the country's political stability. He warned that the political instability resulting from ongoing pension reform efforts—such as governmental censure and rising interest rates—could have more severe economic consequences than a temporary suspension of the reform, despite the estimated financial cost of at least 3 billion euros by 2027. Prime Minister Sébastien Lecornu is expected to address this contentious issue in his upcoming policy declaration at the National Assembly, where the Socialist Party's support remains essential. Beyond this specific reform debate, Aghion is recognized for his influential work in innovation economics and his preference for policies that foster growth over increased taxation, embodying a commitment to research and economic progress. President Emmanuel Macron recently honored Aghion with the Officer of the Order of Merit, noting their longstanding collaboration since the Attali commission and Aghion's passionate dedication to economic research and discovery.