France's Pension Reform Dilemma: A Costly Crisis
France faces a political and economic crisis due to its unpopular pension reform, which raises the retirement age. Acting Finance Minister Roland Lescure warns that modifying the reform is costly. Former Prime Minister Elisabeth Borne suggests a possible suspension, highlighting the contentious debate within the government.
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- France
France's political landscape is embroiled in a crisis exacerbated by controversial pension reforms, according to Acting Finance Minister Roland Lescure. He warned on Wednesday of the significant economic repercussions that modifying the reforms could have. 'Modifying the pension reform will cost hundreds of millions in 2026, and billions in 2027,' Lescure emphasized during his appearance on France Inter radio.
Elisabeth Borne, once France's Prime Minister and current caretaker education minister, expressed a willingness to reconsider the pension overhaul. Her comments to Le Parisien newspaper suggest political openness to suspending the reforms, which she played a key role in advancing through Parliament in 2023. Calls for suspension are gaining traction within the Socialist Party, reflecting broad opposition from France's left.
The pension reform, aimed at gradually raising the retirement age to 64 from 62, is crucial to the government's strategy to alleviate national debt and bolster the economy. However, resistance from trade unions remains strong, illustrating the contentious dialogue within France on balancing economic priorities with public sentiment.
(With inputs from agencies.)
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