Source: The Economist
The French government has decided to go ahead with a controversial pension reform that looks set to divide the country and spark social unrest. On January 10th Elisabeth Borne, the prime minister, unveiled the details of changes to the country’s mandatory pension rules. The fate of these measures will test Emmanuel Macron’s ability to continue to reform France during his second presidential term.
The centrepiece is a raising of the legal minimum retirement age from 62 to 64, by 2030. This measure is deeply unpopular with the French, but in line with Mr Macron’s campaign promise ahead of his re-election in April 2022. Ms Borne’s package includes an increase of €100 ($107) a month to €1,200 for the minimum state pension, which is paid to those who have made the required contributions over a lifetime. The prime minister made other concessions designed to win political support, including extra pension credits for those who have physically demanding jobs or began to work when very young.