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March 16, 2023 12:50 PM

Macron government to force new French retirement age through without vote

Bloomberg
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    Emmanuel_Macron_i.jpg
    Photographer: Alessia Pierdomeni
    Emmanuel Macron, France's president, speaks during a news conference with Mario Draghi, Italy's prime minister at Villa Madama in Rome, Italy, on Friday, Nov. 26, 2021. Italy and France have signed a cooperation deal on the space sector, Draghi said in joint briefing with Macron on Friday in Rome.

    President Emmanuel Macron will use executive fiat to push through his unpopular pension system reform that will raise the French retirement age to 64, according to Agence France Presse, effectively bypassing the lower house of parliament.

    The pension bill was debated in parliament for six weeks before it became clear that Mr. Macron couldn't muster enough votes, leading the government to invoke the constitutional provision known as Article 49.3 that allows for the adoption of a law without a vote.

    Mr. Macron made the pension system revamp — which boosts the minimum retirement age from 62 years — a top priority of his second term, arguing that it was essential to avoid deficits that have been exacerbated by the energy crisis and COVID-19-related spending. The process could still be challenged by opposition lawmakers and a resolution could take months.

    Opposition parties have the right to request a vote of no-confidence in the government. In the event Mr. Macron loses the ballot, the pension bill would be nullified and the government would have to resign. But such a move would require the backing of some conservative lawmakers.

    Millions have taken to the streets to protest the proposal, with a majority of French people opposed to the reform. But turnout plunged in recent marches and polls have shown that a majority of people expected the bill to pass.

    Perhaps the most visible sign of the protests is trash in the streets of cities including Paris, where some 7,000 tons of waste have been left to pile up by striking garbage collectors in recent days.

    The opposition has other tools to delay the reform's enactment, such as requesting the constitutional court to review or tweak the bill or by triggering a mechanism to call for a referendum.

    Macron's Legacy

    "Passing the legislation by decree doesn't mean the problems are over for the government," Melody Mock-Gruet, an expert in French parliamentary affairs, said in an interview. "There might be a long way to go, maybe months, until the reform becomes law."

    Mr. Macron's reform push was made more difficult after he lost an absolute majority in the lower house of parliament last year. His government has tried to secure the support of the conservative Republicains, who have traditionally backed increasing the retirement age, but senior members of the party publicly blasted the pension overhaul since the first days of protests.

    Politically, Mr. Macron had little to lose as he isn't eligible to run again after his second term ends in 2027. And he's determined to seal his legacy as a reformer and score a win for his centrist movement.

    Most French People Oppose Pension Reform

    The 49.3 provision was used in early 2020 by Mr. Macron's government in a first attempt to pass pension reform after months of strikes and demonstrations. The reform was later suspended during the COVID-19 pandemic.

    Without changes to the retirement system, it alone is set to record an annual deficit of as much as 0.8% of annual economic output during the next 10 years, according to France's Pensions Advisory Council. Raising the minimum age to 64 and increasing the minimum period of contributions to access a full pension will eliminate the system's deficit by 2030, according to the government.

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