France's Pension Predicament: Bayrou's Balancing Act

France's new Prime Minister François Bayrou announced the renegotiation of a contentious pension reform plan. His proposal to raise the retirement age from 62 to 64 earlier had sparked massive protests. Bayrou faces significant political challenges as his government lacks a majority amid economic pressures to reduce France's deficit.

France's new Prime Minister François Bayrou has announced a renegotiation of the controversial pension reform plan to raise the retirement age from 62 to 64. The announcement follows massive protests triggered by President Emmanuel Macron's initial proposal.

Bayrou, speaking at the National Assembly, emphasized the need to discuss the reform under transparent conditions and proposed seeking alternatives for financing changes without rigid constraints. His government is operating under political instability, lacking a parliamentary majority.

With upcoming budget constraints and pressure from European financial markets, Bayrou is tasked with consolidating support to pass a crucial budget bill for 2025. Failure to do so could jeopardize France's financial stability, threatening his leadership and potentially giving rise to a no-confidence vote.

(With inputs from agencies.)