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French Pension Revaluation Compromise
France's revised pension revaluation plan involves a two-stage increase, protecting low-income retirees from inflation while aiming for budgetary savings through administrative streamlining.
French
France
PoliticsEconomyLabour MarketFranceBudgetRetirement
French GovernmentAssemblée NationaleSénatLes Républicains
Laurent Saint-MartinLaurent WauquiezGabriel AttalMichel Barnier
- What are the key features of the new pension revaluation plan?
- The revised plan involves a two-stage pension increase. The first, covering half of inflation (approximately 0.9%), will take effect January 1, 2025, for all basic pensions. A second increase will apply in July 2025 to lower pensions, ensuring they fully offset inflation.
- What is the estimated cost of this revised pension revaluation?
- The revised measure will cost between €500 million and €800 million, significantly less than the initial savings projected under the previous plan. Funding will involve rationalizing administrative bureaucracy.
- Which pensioners will benefit from the second revaluation stage?
- The second increase in July 2025 will target pensions below the net minimum wage (SMIC). This aims to protect those with the lowest pensions from inflation's impact, benefiting roughly 44% of retirees.
- What is the overall goal and political context of these pension adjustments?
- The changes aim to balance budgetary concerns with the need to protect retirees' purchasing power, especially those with low pensions. The compromise reflects negotiations between the government and Republican deputies.
- What is the legislative process for this measure, and what are the potential outcomes?
- The proposed amendment will be introduced to the Senate, which will debate it from November 18 to 23. If rejected, the government might resort to a 49.3 motion to pass it into law.