Paris Times

Liberté, Égalité, Fraternité
Thursday, Jul 17, 2025

Negotiations on Pension Reform and Budget 2025 Gain Momentum in France

François Bayrou navigates complex political waters as discussions unfold between employers and unions.
Negotiations surrounding France's pension reform and budget for 2025 are taking an unexpected turn, as the possibility of an agreement between employer representatives and unions has emerged.

Prime Minister François Bayrou, often adept at defying predictions, appears to be steering through political challenges to facilitate a compromise on pension reform, which has been a contentious issue in French politics.

At the beginning of the year, Bayrou narrowly avoided significant political backlash by securing the abstention of socialists and the National Rally during the budget review process.

Integral to these discussions was the controversial proposal for a conclave tasked with revisiting the 2023 pension reform, with the objective of restoring the financial equilibrium of the pension system by 2030.

Initial stages of negotiations faced turbulence, with major unions such as Force Ouvrière (FO) and the General Confederation of Labor (CGT) withdrawing alongside the Union of Proximity Enterprises (U2P).

However, three unions—the French Democratic Confederation of Labour (CFDT), the French Confederation of Management - General Confederation of French Work (CFE-CGC), and the Confederation of French Workers (CFTC)—continued to engage in discussions alongside key employer groups, including the Confederation of Small and Medium-Sized Enterprises (CPME) and the Movement of French Enterprises (Medef).

As the final negotiation session approaches, stakeholders express cautious optimism.

There is an expectation that the pivotal age for retirement will remain at 64, a point that the CFE-CGC appears to accept, while the CFDT seems ready to accommodate—provided certain concessions are made regarding pension calculations for women and the reintegration of criteria for hardship that were removed in 2017.

To address the financial shortfalls within the pension system, two potential measures have been proposed: increasing the Contribution Sociale Générale (CSG) for wealthier retirees or limiting the adjustment of pensions in relation to inflation until 2030. These topics are set to be resolved in the upcoming session.

Furthermore, Medef has suggested reducing the early retirement age from 62 to 61 for cases of incapacity or disability, though the CFTC has voiced hesitance, seeking discussions on a later retirement age for full pensions, currently set at 67 years.

Medef opposes this alteration, citing concerns over the long-term viability of pension financing.

The discussions are marked by the fact that the CFTC's agreement is not essential for the finalization of the accord, which Prime Minister Bayrou is committed to presenting to the Parliament.

As the resolution of the pension deficit remains a significant focus, it is anticipated that political reactions surrounding the National Rally and the Socialists will play a crucial role in the final outcome of these negotiations.
Newsletter

Related Articles

0:00
0:00
Close
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
UK and Germany Collaborate on Global Military Equipment Sales
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
EU Proposes New Tax on Large Companies to Boost Budget
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
Shein Fined €40 Million in France Over Misleading Discounts
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
AI Management Experiment Shows Promise Despite Failures
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
×