Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Make or break for Macron as he unveils unpopular pension reform

Make or break for Macron as he unveils unpopular pension reform

The French president is putting his mandate on the line amid signs of growing social tension and discontent in France.

France's disrupter-in-chief Emmanuel Macron is charging ahead and tackling one of the nation's many sacred cows: raising the retirement age — despite stiff opposition from trade unions and swathes of the French public.

His Prime Minister Elisabeth Borne is set to present on Tuesday the broad strokes of the pension reform — a centerpiece of Macron's electoral campaign — that controversially aims to increase the legal retirement age from 62 to 64 or 65 years old.

“As I promised to you, this year will be the year of reform to the pension system which aims to balance our system for the years and decades to come. We need to work more,” said Macron in his New Year's Eve address.

The fate of the pension reform could well determine the trajectory of the rest of Macron's term in the Elysée. If the French president delivers, he will have proven that he can succeed where predecessors have often stumbled and failed. If he fails, the setback will dash earlier promises that he can govern France despite having lost a parliamentary majority last year.

But the reform bill comes at a very difficult time for the government as households and businesses are hit with inflation and increased energy and fuel bills after several schemes to cushion the effects of the war in Ukraine were phased out last month. Many fear street protests will spread if pensions become a focus of rising discontent.

“It’s difficult to demonstrate against inflation, you can’t ask Putin to bring the price of gas down. But if the (pension) reform starts to crystalize tensions, people may feel they can score a slim victory by getting the government to give up on the reform,” said Bruno Jeanbart, vice-president of the OpinionWay polling institute.

Despite having signaled some flexibility on setting the legal age of retirement, the government has drawn fire from trade unions across the board, which are already preparing nationwide protests and strike action. Macron's government engaged in lengthy discussions with the unions over the past couple of weeks but they were largely fruitless. Debates in France's National Assembly are also expected to be heated, with both the left and the right critical of Macron’s plans to reform France’s state pensions system.


Battle over pensions


The looming fight over pensions is one of the biggest tests Macron has faced since he was re-elected last year. During the presidential campaign, the French president vowed to reform France’s state pensions system and bring it in line with European neighbors such as Spain and Germany where retirement age is 65 to 67 years old. Official predictions show that the finances of France's state pensions system are balanced in the short term but will go into deficit in the long term.

Successive former presidents such as Jacques Chirac and Nicolas Sarkozy have attempted sweeping reforms, but have either failed outright or have had to curtail their ambitions. Macron needs a victory to prove to the French he is still the reform-minded president who is not afraid to disrupt the status quo. He also needs to show the Germans and others that France isn't a Club Med splurger but a sound financial partner bent on tackling its high levels of public debt.

Failure however will signal that the French leader has become a lame-duck president after his party failed to get a majority in parliamentary elections last June.

“I understand people who are worried about changes to the retirement age, but it’s a topic that we now embody, that the president has campaigned on. We have to show that we can get legislation done, that’ll reinforce the credibility of the government and of the president,” said Marie Lebec, an MP from Macron’s Renaissance party.

Since losing parliamentary majority, the government has managed to push through several bills, often with the ad hoc support of the rump of the conservative party Les Républicains. But this time around, things are different.

This is also Macron's second attempt at getting pensions reform through parliament


“It’s not the same type of reform. What has been done so far, the deals on bills, it’s nothing, it’s peanuts. The pensions bill… that's a real moment of truth,” said conservative MP Pierre-Henri Dumont.

Debates between Macron's party, the leftwing NUPES coalition and the far-right National Rally have been hot-tempered in recent months, but this time the opposition is hoping for a field day against the government on an already deeply unpopular bill. If Macron can't get the reform through parliament with the support of Les Républicains, the government may revert to invoking article 49.3 of the constitution to bypass parliament, raising the risk of a vote of no-confidence.

The LR party has said it is willing to vote through the pensions reform on certain conditions and if changes to the legal age of retirement are introduced more gradually than the president wishes. This is promising for the government but the conservatives are divided and it's not guaranteed the leadership would get the votes.

This is also Macron's second attempt at getting pensions reform through parliament. In March 2020, the French president dropped an earlier version of the pensions bill in the wake of the COVID-19 crisis and a wave of protests led by trade unions.


The Yellow Jacket specter


But havoc in the National Assembly is only one of the challenges the government faces. Macron’s prime minister has so far failed to get more moderate trade unions on board the reform plans, and nationwide protest days and strike action are already being planned.

In a sign of how jittery the government has become, ministers have been bending over backwards to snuff out the nascent protest movement, whether it’s among health service workers, bakers, restaurant and bar owners. Last week, Macron promised pay hikes for doctors and ad hoc help for bakers who face soaring electricity bills.

“The danger for [Macron] is that the country becomes a mess and people feel it’s the fault of the government. There’s inflation, difficulties for small businesses, and now we'll be adding strikes, demonstrations, train cancellations,” said Jeanbart.

Among the potentially more troubling fallouts for the government would be the emergence of an unpredictable movement similar to the fiery Yellow Jacket movement in 2018 and 2019, which turned violent and forced Macron to backtrack on a green tax fuel bill. It's a risk supporters of the president have tried to downplay.

“We have seen [recent] protest movements that emerged completely outside the box. But on pensions, it's a topic where trade unions play a very central role and they remain partners involved in the talks with us,” said Lebec.

Beyond expected showdowns with trade unions and opposition parties, there are few certainties for Macron over the next couple of months. The ordeal however will be a long one, with a final vote on the bill not expected before May.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
×