France puts changes in the pension reform on the agenda

The french prime ministerÉlisabeth Borne, was willing this Saturday to introduce changes in the controversial reform of the pensions during the parliamentary process of the government project.

“There will be a parliamentary debate, which is a framework in which the project may vary. We seek commitments and agreements”said Borne in an interview on the France Inter station.

The project, presented last Tuesday, plans to increase the minimum retirement age from the current 62 years to 64 by 2030, as well as bringing forward to 2027 (compared to the initial plan of 2035) the need to contribute 43 years to achieve the maximum pension , from the current 42.

Asked about the day of strikes and protests called for next Thursday by the main unions, which has been supported by left-wing parties, the head of government acknowledged that she understands that the reform causes “unease” among the French, but replied that “A deficit system also generates concern.”

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Borne insisted on the government’s argument that the pension system in its current situation “is deficient”so the reform seeks “ensure the survival of our delivery system”.

The not doing it “It would inevitably lead to a reduction in pensions or an increase in taxes, or else to the end of the pay-as-you-go system and to a capitalization system”he predicted.

Thus, “It is necessary to work more time progressively”he insisted, although he admitted that it is “aware of what it means for many French people”.

But he stressed that the reform will provide funds to revalue the lowest pensions, which will benefit above all “to 30% of the French with more modest income”.

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Faced with the voices that ask to use the reserve fund to stop the hole in pensions, he argued that this fund “It is not made to fill a structural deficit”and recalled that in France there are currently 1.7 contributors for each pensioner, compared to 2.1 in 2002 and the 1.5 that are expected for 2040.

One problem facing the plan is that France is one of the European countries with the lowest activity rate among people aged 55 to 64, only 56% according to the Ministry of Economy.

“We are missing out on the skills of these older people and their ability to generate collective wealth,” lamented the prime minister, who stressed that they will work with companies with incentives to try to increase the activity rate in that age group.

However, he acknowledged that it is “complicated” penalize companies that do not employ enough older workers.

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Facing the parliamentary discussion, the government block has almost assured the support of the conservative party Los Republicanos, which would guarantee a majority in both chambers, but the prime minister did not rule out obtaining more support.

“My goal is to convince the French that this reform is fair and offers social improvements”summarized.

EFE AGENCY.