#GENERAL STRIKE JANUARY 20 FULL#

On 26 October 2022, Macron announced that pension reform scheduled for 2023 intended to raise the retirement age to 65, be gradually increased from 62 to 65 by 2031, by three months per year from September 2023 to September 2030. Raising the retirement age was not part of these initial reforms, but another 'plan to unify the complex French pension system' by 'getting rid of the 42 special regimes for sectors ranging from rail and energy workers to lawyers was crucial to keep the system financially viable'. Reforming the pension system was a significant part of his platform for election in 2017, with initial protests and transport strikes in late 2019, prior to the COVID-19 pandemic which saw Macron delay the reforms further. The pension reforms have long been under consideration by Macron and his government. The government stated that the reforms would 'balance the deficit' in 2030, with a surplus amounting to billions of dollars that would 'pay for measures allowing those in physically demanding jobs to retire early'.

In March 2023, Labor Minister Olivier Dussopt said that 'without immediate action' the pensions deficit would exceed $13bn annually by 2027. The pay-as-you-go system – raising the retirement age would help to further finance, as life expectancy increases and more start work later – would have a surplus of €3.2bn in 2022, but the government's pensions advisory board (COR) forecast that it would 'fall into structural deficits in coming decades unless new financing sources are found'. Īs part of Macron's pension reforms, the retirement age was to be raised to 64 or 65, from 62.

#GENERAL STRIKE JANUARY 20 FULL#

The New York Times add that in order 'o keep the system financially viable without funneling more taxpayer money into it – something the government already does – Macron sought to gradually raise the legal age when workers can start collecting a pension by three months every year until it reaches 64 in 2030.' Additionally, Macron has 'accelerated a previous change that increased the number of years that workers must pay into the system to get a full pension and abolished special pension ‌rules that benefited workers in sectors like energy and transportation'. In an interview in March 2023, Macron said that 'when he began working there were 10 million French pensioners and now there were 17 million'. In addition, the cost of pensions has partially contributed to France's national debt rising to 112% of GDP, compared to 98% before the COVID-19 pandemic this is one of the highest levels in the EU, higher than the UK and Germany. The New York Times says the government argues rising life expectancy 'have left the system in an increasingly precarious state' 'n 2000, there were 2.1 workers paying into the system for every one retiree in 2020 that ratio had fallen to 1.7, and in 2070 it is expected to drop to 1.2, according to official projections'. Compared to other European countries, France possesses 'one of the lowest rates of pensioners at risk of poverty', with a net pension replacement rate ('a measure of how effectively retirement income replaces prior earnings') of 74%, higher than OECD and EU averages. This system, 'which has enabled generations to retire with a guaranteed, state-backed pension, will not change'. France's pension system is largely built on a ' pay-as-you-go structure' both workers and employers 'are assessed mandatory payroll taxes that are used to fund retiree pensions'.

France has one of the lowest retirement ages for an industrialised country, and spends more than most countries on pensions, with it amounting to almost 14% of economic output. The issue of pension reforms has been dealt with by various French governments over recent decades, specifically to tackle budget shortfalls.

See also: 2010 French pension reform strikes and 2019–2020 French pension reform strike

General strike january 20