French PM's Strategic Move: Freezing Retirement Reform to Save the Government
Sébastien Lecornu, the French Prime Minister, has made a bold decision that could significantly impact the country's political landscape. In a strategic move to save his government, Lecornu has announced the suspension of an unpopular retirement reform law, which was set to raise the minimum retirement age to 64 from 62 for most workers. This decision comes as a major victory for the opposition Socialist Party, who had threatened to vote against Lecornu's government if the reform was not frozen.
The reform, passed in 2023, was met with resistance and sparked concerns about the financial burden it would place on workers. Lecornu's statement highlights the importance of the pension debate, emphasizing that it is not just a financial equation but an essential part of the social contract. He believes that this contract needs an overhaul, indicating a deeper need for reform.
The political crisis in France has been intense, with Lecornu's first government collapsing just 14 hours after its formation. The current situation has raised concerns about the country's ability to manage its finances, with the eurozone's second-largest economy facing potential financial instability. The suspension of the retirement reform is a temporary measure, but Lecornu insists it must be accompanied by adequate savings to control public spending and reduce the budget deficit.
The cost of freezing the reform is estimated at €400 million for 2026. Lecornu's government has proposed a budget for the next year, aiming to reduce the deficit below 5% of GDP, which includes €31 billion in spending cuts and tax increases. The Prime Minister emphasizes the importance of maintaining France's fiscal credibility and the integrity of its pension system.
As the story unfolds, the political future of Lecornu's government remains uncertain. The opposition parties' next moves will determine whether this strategy buys Lecornu time or pushes France further into political chaos. The upcoming votes on the motions of no confidence will be crucial in shaping the country's future direction.
