France: Macron Steps Back, Postpones Pension Reform Until 2021

During a meeting with employers and workers in Paris, France’s Prime Minister Jean Castex Friday proposed delaying pension reform negotiations until 2021.

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Arguing the existence of an economic crisis and a health emergency, he proposed also to postpone the reform of unemployment insurance until next year.

The new public pension system law, which was approved on Nov. 1, 2019, was expected to take effect in September. Nevertheless, the memory of the massive social protests, as well as the politicians' electoral interests, modified such planning.

The French authorities consider that this postponement should serve so that social groups have the possibility to both discuss different modalities for the reform's gradual application and "assume their responsibilities" regarding the current system.

Castex also announced that the Retirement Guidance Council (COR) will evaluate the financial situation of the current plans, which could approach US$32 billion in late 2020.

Previously, President Emmanuel Macron’s proposal sought to eliminate those specific pension schemes through which some workers can take early retirement or pay fewer taxes.

His reform also sought to increase the retirement age to create a single pension system that would be more financially sustainable.