France’s labour and management representatives begin three months of negotiations Thursday on the 2023 pension reform that raised the retirement age to 64. While some unions call for the reform to be repealed, the government is asking for the system’s budget to be balanced by 2030, which might not be possible without raising the retirement age.
The weekly discussions between social partners is part of Prime Minister François Bayrou’s pledge to reopen talks on the 2023 pension reform, which pushes the retirement age up from 62 to 64 years old.
Bayrou promised discussions “without taboos” to find ways to address concerns about raising the age, while also balancing the budget.
The discussions will start with a review of a report issued last week by the state auditor, the Cour des comptes, which said the reform was necessary, but not enough to cover future financing needs.
The auditor estimated that the pension system's deficit would reach €6.6 billion in 2025 and “stabilise” through 2030, before expanding again.
Scepticism of the process
The government has promised to stay out of the discussions between labour and management representatives, including the five main trade unions – CFDT, CGT, FO, CFE-CGC and CFTC – and the three employers' groups – Medef, CPME, U2P.
Several participants and elected representatives voiced their scepticism about the discussions, even before they started.
“I'm pessimistic about the outcome,” Medef president Patrick Martin told Le Monde.
"We have a hard time seeing how a return to [fiscal] equilibrium in 2030 can be attained if we call into question the rule of 64 years old.”
The FO union also expressed scepticism, but on the issue of not calling into question the 64-year-old retirement age.
“Frankly, if there's no repeal [of the 2023 reform, which raised the age], I don't see how we can start talking,” negotiator Michel Beaugas told the AFP news agency.
The CGT has specifically asked for figures on the cost of returning the retirement age to 62.
The weekly Thursday discussions are scheduled to end in late May or early June. If an agreement is reached, it will be submitted to parliament.
Bayrou said that if no agreement is reached, the 2023 law will remain, and be applied.
(with AFP)
