France’s new PM announces renegotiation of contested pension reforms 

The new prime minister of France has announced he will renegotiate the contested plan to raise the age of retirement in the country in a bid to stabilise his government and pass a budget.

“I’m choosing to put this subject back on the agenda, with the social partners, for a short time and under transparent conditions,” Francois Bayrou said during his first address to lawmakers at the National Assembly on Tuesday.

Bayrou, who was appointed last month after his predecessor’s government fell, pledged to pursue “a new path of reform” as long as an approved budget can guarantee financing and the “financial balance” of the pension system is maintained.

The plan to raise the retirement age from 62 to 64 was a cornerstone of reforms led by President Emmanuel Macron – who called shock early elections late last year, only to lose his working majority in the parliament. A main stated aim of the reform was unlocking billions in funds to narrow a budget deficit and maintain pensions stability.

The effort unleashed months of mass protests from January to June 2023, with opposition groups and unions saying the reform would disproportionately affect certain groups like those with physically demanding jobs.

But it was passed in April 2023 and has gradually started being implemented. In addition to the age limit, the law requires people to work 43 years to receive a full pension.

The new prime minister now aims to advance talks with other parties, particularly the Socialists, to avoid another government collapse. Bayrou has so far not announced any definitive moves on disproportionately affected groups or the age of 64.

The Socialists have welcomed talks that would include pension reform, but the possibility of another no-confidence motion remains.

The centre-right Republicans and the centralist allies of Macron are currently propping up the Bayrou cabinet as it seeks to accelerate efforts to pass the 2025 budget.

The country is now relying on temporary measures to prevent the shutdown of government, but needs a budget in place in order to help reduce France’s deficit and enable key expenses, such as military spending amid Russia’s war with Ukraine.

Far-right leader and Macron rival Marine Le Pen, who was instrumental in toppling the previous government, also continues to hold sway as her National Rally party holds the largest single group in the lower house of parliament.

Her ally and National Rally President Jordan Bardella criticised Bayrou’s negotiations with the Socialists.

Bardella warned on Monday that his party would oppose any budget that would raise the cost of medication, provide more healthcare for migrants staying illegally in France, and impose new taxes on businesses.