What are France’s proposed pension reforms, which have led to widespread protests?

Notably, this is not Macron’s first tryst with pension reforms. His previous efforts in 2019 failed after strong protests.

What are the proposed reforms?

In a press conference addressing the proposed reforms, Prime Minister Borne stated that the minimum retirement age to be entitled to a full pension will be gradually increased by three months every year, starting this year, reported Le Monde. This would go on till 2030, by which time, the retirement age would have increased from 62 to 64. 

Furthermore, starting from 2027, people will need to have worked for at least 43 years to get a full pension, said the prime minister as per Le Monde. While there will be exceptions to this rule, notably for police officers and firefighters, anyone not putting in 43 years of work will have to work till age 67 in order to retire with full pensions. 

A key feature of the reforms is an increase in pensions for some, especially minimum-wage workers. According to the latest proposals, the minimum pension for low-income workers who have a full career will be increased to 85 per cent of SMIC (minimum wage), i.e. nearly €1,200 at present. Currently, more than 2 million workers fall under this category and are likely to see their pensions rise by a minimum of  € 100 a month.

What are some of the criticisms of this scheme?

As expected, these reforms have not been received kindly by many, especially from France’s left wing. The country’s trade unions and left-wing parties say that the proposed changes are not needed in order to fund France’s pension system, reported Euronews. Rather, many have suggested a rethinking of France’s tax system and a crackdown on tax evasion instead.

Laurent Berger, who heads the moderate CFDT union, told journalists after a meeting of labour leaders that “nothing justifies such a brutal reform,” reported DW.

Crucially, raising of retirement age and requirements on career lengths will specifically affect the most vulnerable. For instance, women are set to be the biggest losers with the new 43-year career requirement. Many women fall out of the workforce to raise a family, rejoining after lengthy gaps. According to the proposed reforms, these women will have to still put in 43 years of work or turn 67 to avail full retirement benefits.

Furthermore, while pensions will go up initially, indexing pensions to the minimum wage rather than inflation (as proposed under the reforms) will over time likely disadvantage workers. In France, like most countries, minimum wage has not grown proportionally to inflation. This will mean that in real terms, pension incomes might actually go down over time.

France’s proposed reforms prioritise fiscal stability and “attaining equilibrium” to create a sustainable pension system over the size of the welfare payments received.

Who is criticising the reforms?

The entirety of France’s left has been up in arms over the reforms. The leader of left-wing La France Insoumise (LFI), Jean-Luc Mélenchon took to Twitter to lambast Emmanuel Macron over the reforms, calling them a “social regression.”

Report de l’âge de départ. Augmentation des annuités. Suppression des régimes spéciaux avantageux. La réforme #Macron #Borne c’est une grave régression sociale. #ReformeDesRetraites

— Jean-Luc Mélenchon (@JLMelenchon) January 10, 2023

Meanwhile, the proposal also received criticism from the far right. Leader of the far-right Rassemblement Nationale (RN), Marine Le Pen, wrote that “the French can count on all our determination to block this unjust reform.”

Après avoir été élu grâce à la gauche et à la France insoumise, Emmanuel Macron va tenter désormais, avec le soutien de LR, de faire passer la retraite à 64 ans. Les Français peuvent compter sur toute notre détermination pour faire barrage à cette réforme injuste.

— Marine Le Pen (@MLP_officiel) January 10, 2023

With the French parliament convening next month, heated debate is expected. Without having a majority in parliament, the French government will either need support from right-wing legislators or will have to use constitutional loopholes to pass the reform without a vote.

Either way, France is set for tumultuous times with a majority of the country opposing the proposed reforms. A survey published in Le Journal du Dimanche, a leading French weekly, states that over 68 per cent of the country’s population is against these reforms.

How are protests likely to play out?

France’s eight main trade unions called for a day of strikes and protests on January 19 against pension reform, reported Le Monde. The strikes aim to “kick off a powerful movement for pensions in the long term,” said a joint statement from the unions.

Protests are likely to be disruptive, as they will mostly involve striking public sector workers. Teachers, nurses, railway and police unions have all called for workers to join the movement. Some energy and refinery workers are expected to strike as well. Le Parisien reported that more than 500 trains are likely to be cancelled by the national railways.