President Emmanuel Macron embarks this week on the next - and likely most perilo...
PARIS - President Emmanuel Macron embarks this week on the next - and likely most perilous - leg of his reform drive by launching talks with unions on an overhaul of France’s convoluted pension system to plug a chronic deficit.
Macron returns to his domestic agenda a week after hosting a summit of G7 leaders where bonhomie papered over trans-Atlantic divisions, the French leader casting himself as a central figure in world diplomacy and a unifying champion of multilateralism. “The government and myself are totally determined,” Philippe told reporters on Friday. “We’ve got a few months to make it happen, to come up with and draft this project.”
In France private pensions schemes are rare, which means that nearly everyone pays into a public system, albeit through 42 different contribution and benefit schemes that Macron wants to replace with a single points-based scheme. Despite the fact that people are living longer than ever, polls suggest the French remain stubbornly attached to the current retirement age of 62, one of the lowest among OECD countries.
Critics say this would punish those who start their careers in their mid 20s after long studies, a problem that Macron has said he is keen to find a solution for. Economists say people will need to pay into the system one way or another to put it on sounder financial footing.
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