Cliff Notes
- France’s Prime Minister Sebastien Lecornu has suspended pension reforms, raising the retirement age from 62 to 64, until after the 2027 presidential election amid political pressure.
- The decision aims to secure support from left-wing MPs during two no-confidence votes, reflecting the challenges faced by President Macron’s administration.
- This suspension will incur significant costs, estimated at €400m in 2026 and €1.8bn in 2027, necessitating financial offsets to manage France’s budget deficit.
French PM Sebastien Lecornu shelves Emmanuel Macron’s pension reform in bid for political survival | World News
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France’s reappointed prime minister has offered to suspend controversial reforms to the country’s pension system, days after returning to the top role.
Emmanuel Macron’s pension reform, which gradually raises the age at which a worker can retire on a full pension from 62 to 64, was forced through without a vote in parliament after weeks of street protests in 2023.
Sebastien Lecornu said on Tuesday he would postpone the introduction of the scheme, one of Mr Macron’s main economic policies, until after the 2027 presidential election.
With two no-confidence votes in parliament this week, Mr Lecornu had little choice but to make the offer to secure the support of left-wing MPs who demanded it as the price of their support for his survival.
The prime minister will hope it is enough to get a slimmed-down 2026 budget passed at a time when France’s public finances are in a mess.
It will be seen as a blow to Mr Macron, leaving him with little in the way of domestic achievements after eight years in office. But it reflects the reality that giving ground on the landmark measure was the only way to ensure the survival of his sixth prime minister in under two years.
Mr Lecornu told MPs he will “suspend the 2023 pension reform until the presidential election”.
“No increase in the retirement age will take place from now until January 2028,” he added.
The move will cost the Treasury €400m (£349m) in 2026, and €1.8bn (£1.5bn) the year after, he said, warning it couldn’t just be added to the deficit and “must therefore be financially offset, including through savings measures”.
Mr Lecornu, 39, was reappointed as prime minister by Mr Macron on Friday, four days after he resigned from the role just hours after naming his cabinet – and after political rivals threatened to topple his government.
Economists in Europe have previously warned that France – the EU’s second-largest Economy – faces a Greek-style debt crisis, with its deficit at 5.4%.
Mr Lecornu is hoping to bring that down to 4.7% with an overall package of cuts totalling €30bn (£26bn), but his plans were dismissed as wishful thinking by France’s independent fiscal watchdog.
Mr Macron has burned through five prime ministers in less than two years, but has so far refused to call another election or resign.