France raises retirement age to 64 to save red numbers

A critical step to make the role of screw that cabinet Emmanuel Macron It intends to grant the French public pension system, which it has sought since the beginning of its first legislature without being able to prove it in recent years. On Tuesday afternoon, the French executive presented a draft devaluation of the national pension system, which must be approved in the National Assembly (AN), the first chamber of the French parliament, with the negotiating support of Los Republicanos (LR, traditional right). The pillars of reform, which have been loosened amid the angry protests of civil society and finally in the parliamentary negotiation process, pass through the increase in The retirement age is from 62 to 64 years And extending the subscription period required to reach 100% of the benefit to 43 years.

Although the plan was more ambitious. Between 2017 and 2019, Macron proposed a reform of the national pension system with three main points: 62 to 65 years old official retirement age; the abolition of thirty pension schemes, very different, between public and private, to create one; and impose a contribution of 43 years in order to receive the full pension.

This project was abandoned, between 2019 and 2020, a victim of social ringworm and trade unions, before the global spread of the covid pandemic. Despite being re-elected president last May, Macron has waited seven months to resubmit to the National Assembly (AN) a new bill that has been devalued on all its essential points. Finally, as the Prime Minister of the French Executive explained, Elizabeth BourneThe retirement age is from 62 to 63 years old, between next year and 2027, to move to 64 years old in 2030. In his year-end speech, Macron declared that the French had to “work harder”.

the new Andretirement age, between 63 and 64 years old, is very far from the retirement age in Germany, the United Kingdom, Italy and Spain (between 66 and 69 years). After several years of tensions, crises, mobilization and “reconciliation” with the traditional right, Macron has lowered and devalued his original ambitions, to accept an early retirement age in Europe. However, moderation in these measures will not prevent the unions from mobilizing on January 19, when the first protest strike will be launched.

Macron also abandons the creation of a file Unique system Pensions and unification of retirement models for the public sector and the private sector. Until a few years from now, the public sector will continue to receive premium pensions. It should be noted at this point that public opinion has a bad or very bad opinion of the reform. According to opinion polls, 54% of the French said they “oppose” reform, while the parliamentary debate is expected to last several “hot” weeks.

The new legislation will not change years of listing necessary to reach the full benefit: 172 quarts, 43 years old that were applied in the previous reform of 2014. Of course, the transit period is accelerated, so that if the previous law was expected to reach this point in 2035, the new regulation advances it to 2027. In addition, the French government announces An exceptional reassessment of the most modest pensions: the less fortunate retirees should receive a minimum of around 1,200 euros, provided they have contributed for 43 years.

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However, this continuity of the system due to low expectations of the planned measures to be implemented is very misleading: the announced abolition of most private systems is expected to last for several years (five years, on average) … Meanwhile, private pension systems (Public sector) You will continue to benefit from certain benefits.

Differences and similarities

Being one of the main neighbors of Spainthis is precisely the years needed to reach full benefit One of the points that makes a difference with the public pension system also tightened in our country, this level of pension is reached with 37 years and nine months of citation.

However, while the Spanish executive has been taking measures over the past year to Reverse disability The case of social security accounts – which were accumulating a structural imbalance of 18,000 million euros before the pandemic and that part of the expenditure was derived from the general budget – the French government is putting measures on the table at a time when it has accumulated a surplus of 4,000 million euros in the system in the past two years.

However, it is taking the measure in order to avoid a deficit scenario that the internal study services actually deduct for the coming years. The Pension Guidance Council conducted a recent study in which the government warned that the system is going to take a bit of a break in the next decade 25 thousand million euros (Between 2022 and 2032) to maintain the balance of the budget.

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