French PM to unveil pension reform in big test for Macron

The details of a pension Reform were revealed by French Prime Minister Elisabeth Borne on Tuesday (10 January). This reform is already causing anger among unions and a large number of voters. It will be a crucial test for President Emmanuel Macron's ability and willingness to make changes.

One thing is certain: French workers will need to work harder than they do now.

Most likely, the government would raise the retirement age from 62 to 64. Macron originally wanted 65 but Macron will have to give up one year in order for the reform to be adopted by parliament.

Another thing is certain: The government will clash with labor unions. They all, even the moderate reform-minded CFDT, have stated that they oppose raising the retirement age.

64 or 65 don't really matter to them. Both are unacceptable.

For another group, the conservative Les Republicains is the key -- but the age target is crucial. The reform of parliament will be decided by how its lawmakers vote, as Macron lost his majority last year.

LR might have lost a lot in the last year's elections, but their MPs and some centre-right allies would be sufficient to push through the reform.

Eric Ciotti, the new chief of LR, said he supports the reform - provided his conditions are met. These include raising the retirement age from 65 to 64 and increasing the minimum pension for all retirees, instead of just those who have recently retired.

However, not all members of his party agree so there is still uncertainty.

It seems that the streets will pose the greatest challenge at this point.

It is unclear if the unions will be able to gather enough people angry about Macron's pension reform and other issues, including the cost of living crisis.

PROTESTS

Pension reform in France is a sensitive topic. This is especially so with increasing social discontent over the rising cost of living.

France has one of the lowest retirement age in industrialized countries. According to the Organisation for Economic Cooperation and Development, France is spending more on pensions than any other country at almost 14% of its economic output.

However, polls indicate that pension reform is not popular.

Only 27% of voters support raising the retirement age. This is according to an Elabe poll conducted for BFM TV. 47% of voters want no changes to the retirement age, while 25% prefer that retirement be sooner than it is.

Macron was forced to put off his first attempt at reforming pensions in 2020 because the government had to stop the COVID epidemic and save the economy.

Although the strike action was limited to certain sectors like airlines and refineries, anger over pension reform could spark wider protests.

Olivier Veran, a spokesperson for the government, said that reforming pensions is not a popular idea. He stated instead that it was necessary to be responsible. Because it is the only way to ensure that our social model survives, we'll continue to go all the way.

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