French Government Faces Budgetary Risks Amid Pension Reform Uncertainty
The French government may resort to executive action to advance its agenda if it fails to secure the necessary votes from the Socialists in the National Assembly to pass the social security budget, reports 24brussels. The Socialists, holding 69 seats, are pivotal in determining the budget’s fate.
Boris Vallaud, the Socialist parliamentary leader, acknowledged the precarious nature of this collaboration, describing it as a “risky bet” to rely on Prime Minister Lecornu’s commitment to freeze the contentious pension reform.
Opposition leaders swiftly raised concerns regarding the government’s sincerity about its intentions. Eric Coquerel, head of the finance committee and a prominent figure in the hard-left France Unbowed group, remarked, “All of this feels like a mix of improvisation — and maybe a bit of a swindle.”
The proposed pension reform entails raising the minimum retirement age incrementally by three months annually until 2030. Currently, the government seeks to pause this increase at 62 years and nine months until January 2028, aligning with the timeline of the next presidential election.
On Tuesday, President Emmanuel Macron appeared to endorse Lecornu’s move to freeze the reform, a significant aspect of his controversial second term. The ongoing political maneuvering underscores the complex interplay between government stability and public trust in France’s economic policies.
