Macron's Pension Reform Suspended... French Prime Minister: "Postponed Until After Presidential Election"

Lecornu Announces in Policy Speech

Sebastien Lecornu, the Prime Minister of France, is delivering a policy speech on pension reform on the podium of the National Assembly in Paris on the 14th (local time). Photo by Reuters Yonhap News

On the 14th (local time), French Prime Minister Sebastien Lecornu announced that he would temporarily suspend the pension reform initiative promoted by President Emmanuel Macron, following intense opposition from both the opposition parties and public opinion.

According to AFP, Bloomberg, and BBC, Prime Minister Lecornu stated in a policy speech that he would propose to the National Assembly to postpone the pension reform, which has been in effect since 2023, until after the next presidential election. He also declared, "There will be no increase in the retirement age from now until January 2028." The next presidential election is scheduled for April to May 2027.

He explained to the assembly that the cost of suspending the pension reform is estimated at 400 million euros (663 billion won) in 2026 and 1.8 billion euros (approximately 2.986 trillion won) in 2027, adding, "We must compensate by saving elsewhere."

The government's decision to back down comes in an effort to resolve France's severe political instability, which was highlighted when Prime Minister Lecornu resigned just 27 days after his appointment and was reappointed only four days later. President Macron also supported the postponement of pension reform, which had been a key pledge of his presidential campaign, following Lecornu's reappointment as prime minister.

The pension reform, which has sparked the most controversy in French society in recent years, centers on gradually raising the retirement age for receiving pensions from the current 62 to 64 by 2030 by increasing it by three months each year. It also includes extending the required contribution period to receive a full pension by one year to 43 years starting in 2027.

Opposition parties across the spectrum, from the far right to the far left, have tabled a motion of no confidence against the Lecornu government and are demanding early parliamentary elections. Lecornu must secure their support to maintain his cabinet.

The center-left Socialist Party has declared that it will support the current government only if there is a complete and immediate halt to the pension reform. Laurent Baumel, a Socialist Party lawmaker, emphasized on France TV, "If Lecornu does not explicitly state 'the immediate and complete suspension of pension reform,' it will inevitably lead to a vote of no confidence."

The massive fiscal deficit remains another major challenge. Leading foreign media outlets have pointed out that Prime Minister Lecornu must pass an austerity budget through parliament to reduce the fiscal deficit, which stands at 169.6 billion euros (approximately 282 trillion won), or 5.8% of France's gross domestic product (GDP). France's public debt amounts to about 114% of GDP, the third highest in the Eurozone after Greece and Italy.