'Retirement Age 62 to 64' Passed by French Parliament... Why Is Macron So Committed to Pension Reform?

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The no-confidence motions against Prime Minister ?lisabeth Borne's cabinet, proposed by the opposition in response to French President Emmanuel Macron's pension reform plan, were narrowly defeated. As a result, the pension reform bill, which extends the retirement age from 62 to 64, effectively passed through the parliament.

On the 20th (local time), the French National Assembly rejected both no-confidence motions initiated by the opposition against Prime Minister ?lisabeth Borne's cabinet. To pass a no-confidence motion, a majority of 287 votes out of 573 total members is required. The first motion fell short by 9 votes, receiving 278 in favor, while the second motion only garnered 94 votes, failing to meet the parliamentary threshold.

Consequently, the pension reform plan pushed forward by President Macron has the same effect as passing through the parliament. Earlier, President Macron invoked Article 49, Paragraph 3 of the French Constitution, which allows the government to pass a bill without a vote in both houses. This was a strategic move anticipating parliamentary opposition, but even with this provision, if the parliament passes a no-confidence motion against the cabinet, including the prime minister, with a majority vote, the legislation becomes invalid.

Public sentiment in France is boiling over the pension reform. There is growing opposition to the extension of the working period required to receive pensions. Two-thirds of the population oppose the pension reform (as of the 19th, according to French polling firm IFOP), and protests condemning President Macron are intensifying across Paris. The newly passed pension reform primarily raises the retirement age from the current 62 to 64 and extends the pension contribution period from 42 to 43 years, while increasing the minimum pension payout from 75% to 85% of the minimum wage (approximately 1,200 euros per month).

Despite facing political pressure that even threatens 'impeachment,' President Macron has prioritized securing pension finances as his top policy goal. Under the current pension system, the pension deficit is projected to reach 13.5 billion euros by 2030. The reform is estimated to reduce expenditures by about 10.3 billion euros in 2027 and 17.7 billion euros in 2030.

Another reason behind the pension reform is the relatively short working period of French citizens. The average retirement age for French men is 60.4 years, which is lower than the European Union (EU) average of 62.6 years and the Organisation for Economic Co-operation and Development (OECD) average of 63.8 years. Accordingly, the proportion of pension expenditure relative to GDP is 13%, exceeding the EU average of 10.3%.

President Macron's successful re-election last year, which means he does not need to run again, has also allowed him to fully commit to the reform. Experts analyze that if he fails to complete the pension reform promised during his re-election campaign, he risks losing support, and successfully implementing the reform is seen as a strategy to overcome the current minority government situation.