French Prime Minister Sébastien Lecornu announced on Tuesday the suspension of a contentious plan to raise the retirement age from 62 to 64. This decision intends to stabilise his minority government following a week of political instability. In a speech at the National Assembly, Lecornu indicated that this law—an important initiative of President Emmanuel Macron—will be on hold until after the next presidential election in 2027.
On Thursday, Lecornu will confront two no-confidence motions from the hard-left party France Unbowed and the far-right National Rally. While these parties do not possess sufficient seats to unseat the PM individually, they could potentially collaborate with the Socialist Party, which advocates for the law’s repeal. Boris Vallaud, president of the Socialist group in the National Assembly, characterised the suspension as a “first step” toward rescinding the law.
Lecornu emphasised that suspending this plan is projected to incur costs of €400 million in 2026 and €1.8 billion in 2027, benefiting approximately 3.5 million French citizens. He underscored the necessity for financial compensation to avoid exacerbating the deficit, which reached 5.8% of gross domestic product last year, significantly surpassing the European Union’s target of 3%. Additionally, France’s public debt currently amounts to 3.346 trillion euros, or 114% of GDP.
During a cabinet meeting, Lecornu discussed the upcoming 2026 budget, which must be approved by the year’s end, to reduce the deficit below 5% of GDP. Proposed measures include streamlining regulations and combating social and tax fraud.
Lecornu also confirmed he would not employ a special constitutional power to expedite the budget process without a parliamentary vote. Instead, he aims to reach a compromise with lawmakers.
The reappointment of Lecornu has drawn criticism from various political factions, prompting the National Rally to call for an early parliamentary vote, while France Unbowed is advocating for President Macron to resign.
In 2023, the French parliament enacted a pension reform that raised the retirement age from 62 to 64, implemented without a vote amid widespread protests. Opposition parties have called for the repeal of this legislation. Notably, Nobel Prize-winning economist Philippe Aghion has advocated for a suspension of the reform until 2027, arguing that this could help restore stability and that pausing the reform would incur minimal costs.
While Fabien Roussel, leader of the Communist Party, has characterised the suspension as an initial victory, the Green Party remains unconvinced. It plans to express its dissent by voting to remove Lecornu’s government. Lecornu’s reappointment is perceived as President Macron’s final opportunity to revitalise his administration, especially as his centrist party currently lacks a majority in the National Assembly and faces increasing criticism.
Furthermore, President Macron’s decision to dissolve the National Assembly last year resulted in a hung parliament and significant political deadlock, challenging efforts to address rising poverty and a growing debt crisis.
(This article used information from the Associated Press)
