Nobel Laureate Philippe Aghion Urges Pause on France's Pension Reform Until 2027 Election

Philippe Aghion, the new Nobel Prize winner in Economics, has publicly called for a halt to the ongoing pension reform debate in France, urging a "stop-the-clock" approach until after the 2027 presidential elections. He proposes maintaining the current retirement age of 62 years and 9 months for the time being as a means to reduce social tensions without incurring significant costs, emphasizing this as a pragmatic interim solution.

Aghion supports reviewing the retirement age to increase it to 63 eventually but insists that the reform should only resume after the political climate stabilizes post-election. Without such a pause, the reform is expected to proceed automatically in 2027. Beyond the pension issue, Aghion has voiced opposition to the Zucman tax but supports measures targeting abuses of family holdings and calls for contributions from ultra-wealthy individuals — all structured to safeguard productive sectors and innovators.

In a broader political context, Aghion has also advocated for a negotiated agreement between the government and the Socialist Party to suspend the pension reform, highlighting the dangerous prospect of the far-right National Rally (RN) gaining power. He appealed to socialists to accept this concession as a measure to protect the country from political instability and expressed hope that this pause would be accepted as a necessary move to prevent the RN's rise. This message coincides with a major policy announcement expected from Sébastien Lecornu, underlining the government's critical crossroads on this issue.

Aghion's intervention adds a significant voice from the economic academia to the heated pension reform debate, framing a temporary freeze on the reform as a cost-effective way to restore social calm and avert political risks ahead of crucial elections. His calls put additional pressure on political actors to consider compromise and delay contentious measures until after the presidential vote.