French PM Proposes Pension Reform Renegotiation to Secure 2025 Budget

French Prime Minister Francois Bayrou has opened negotiations for a new pension reform potentially lowering the minimum retirement age of 64, to gain left-wing support for the 2025 budget. The proposal follows political instability and growing national debt concerns in France.

French Prime Minister Francois Bayrou has signaled a willingness to renegotiate the 2023 pension reform in hopes of winning over left-wing lawmakers necessary to pass the 2025 budget. In his policy-setting speech, Bayrou suggested trade unions and employer groups undertake a three-month mission to devise a new pension agreement.

The Prime Minister emphasized that the contentious minimum retirement age of 64 should not be untouchable. However, he warned that France's escalating debt remains a critical challenge, likening it to a 'sword of Damocles' threatening future generations. Any new pension deal must maintain fiscal balance.

Should a balanced agreement not emerge, existing rules would remain. Bayrou stated that the working group would commence its efforts following a comprehensive financial audit of the pension system, to be conducted by France's respected auditing entity. This development comes amid political upheaval and economic challenges.

(With inputs from agencies.)