• Thursday, 04 July 2024

French government pushes landmark pension reform through parliament

French government pushes landmark pension reform through parliament

Paris, 16 March 2023 (dpa/MIA) - France's government has pushed its controversial pension reform through parliament without risking a final vote in the lower house.

The government decided on Thursday at the last minute to implement President Emmanuel Macron's most important reform project - which foresees the gradual increase of the retirement age from 62 to 64 - and bypass the lower house of parliament, the National Assembly, where the result was too close to call.

There is a special article in the French constitution which allows for this.

Earlier on Thursday the French Senate approved the highly contested pension reform plan, with 193 senators voting in favour, 114 against and 38 abstentions.

The reform can still be overturned by a vote of no confidence in the government.

In parliament, Prime Minister Élisabeth Borne shouted over opposition calls for her resignation: "This reform is necessary."

The use of the special article is an admission of weakness for Macron and the government. In the end however, it seemed that the government judged a potentially failed vote in the lower house to be more disastrous than forcing it through.

At the last minute before the National Assembly session, Macron and the government conferred again and decided to resort to the special article.

Since parliamentary elections in June, the president's centrist camp no longer has an absolute majority in the National Assembly.

For the reform, the government was counting on the support of the conservative Républicains. It was unclear up until the end whether enough lawmakers from the divided parliamentary group would approve the reform.

The special article allowing bills to pass without a vote is in place only under limited circumstances to prevent blockades on important issues. It requires the Senate to approve the bill. The government may only use this special article once a year.

The reform is not yet set in stone. The left and right-wing nationalists have already called for votes of no confidence. It is however unlikely that this will topple the government.

In addition to pushing the retirement age back to 64, Macron also wants to accelerate the increase in the period of payment required for a full pension.

His government says the unpopular measures are needed to shore up the scheme for the future.

Labour unions denounce the plan and workers at oil refineries, schools, airports, rail systems and other places have walked off their jobs. Protests have been held in cities and towns across France for weeks.

Thousands of people came out to demonstrate once again on Wednesday. Macron's decision to pass the reform without a vote may add fuel to the fire.

At the peak of the protests, the Interior Ministry reported that 1 million people took part, while the CGT union spoke of 3.5 million participants.

The current retirement age is 62 years. In practice, however, it can begin years later because many need to work longer in order to be entitled to a full pension work.

At the age of 67 there is a pension without deductions, regardless of how long it has been paid in. The government aims to keep this rule.

Under the reforms, the monthly minimum pension would increase to around €1,200 ($1,270).

Macron, who has conspicuously kept a low profile in the dispute over the pension reform and can now shift some of the blame onto the government and the opposition, is likely to have his image tainted by the affair.