France: Macron’s new attempt at pension reform

France’s government wants to negotiate the planned pension reform with the opposition and the social partners. If necessary, she could also decide on her own. President Macron has already threatened parliament with new elections.

Negotiate instead of pushing through with a heavy hand. France’s Prime Minister Elisabeth Borne issued this motto for the implementation of the controversial pension reform. Borne commissioned Labor Minister Olivier Dussopt to hold talks with the social partners and the opposition in the coming weeks: “We know the positions of the different camps,” said Borne. “Some refuse completely. They say the pension system is doing well.”

This nonsense must finally be over, said Borne. You have to work together now: “The trade unions and employers’ associations wanted to discuss. And we’re giving them this space now.”

The retirement age should rise – up to 65 years

The pension reform that President Emmanuel Macron and the government have now put back on the table provides, among other things, for the retirement age to be gradually increased from the current 62 to 64 and 65 respectively.

On the other hand, there is massive resistance from the trade unions, above all the left-wing CGT. Nevertheless, she will also take up the offer of talks from the Minister of Labor, says CGT boss Philippe Martinez: “We are going to make our position clear once again. But if the minister presents us with a fait accompli, especially when it comes to raising the retirement age, then then we’ll be gone soon.” And on the street to organize the protest.

In 2019, the pension reform failed

It was similar at the end of 2019, beginning of 2020. At that time, too, the government held talks with all the unions, but no agreement was reached. The strikes lasted 55 days until the pandemic finally caused the pension reform to be put on hold.

But even in the second term of office of the French President, the reform is still considered the heart of his policy. It should be brought through parliament as a legal text by the end of winter and come into force in summer 2023.

Government can also decide alone

“The pension system will be in deficit by 2027, at 12.5 billion euros a year,” explains Labor Minister Dussopt. “That’s why we have to reform it now, so that one day our children will also have a pension.”

If there is no majority in parliament, the government could pass the reform without a vote. Article 49.3 of the French Constitution allows this, as long as the opposition does not initiate a vote of no confidence. In the event of a vote of no confidence, President Macron is already threatening that he will dissolve the National Assembly, Labor Minister Dussopt said:

If the government actually pulls Article 49.3, the left-green party alliance Nupes and the extreme right-wing Rassemblement National will initiate a vote of no confidence. However, the votes of the conservative Les Republicains are also needed to remove the government. Theoretically, they support large parts of the reform. The conservative Senate President Gérard Lacher explained: “We have been saying for a long time that the reform is essential, but it takes courage to tackle it. We can only save our pension system with a reform.”

Macron’s threat to Republicans

Nevertheless, his party is under pressure. After the major electoral defeats in the presidential and parliamentary elections, it has to assert itself again. That also means not giving up on everything the government proposes. Therefore, Macron’s threat to dissolve the National Assembly is clearly aimed at Les Republicains. Because they would be – at least as of now – probably the biggest losers in new elections.