French PM suspends pension reforms plan to push budget

French Prime Minister Sebastien Lecornu has suspended his landmark 2023 pension reform until after the 2027 presidential election, bowing to pressure from MPs demanding such a move to ensure his political survival.

Lecornu, who faces an uphill battle to survive at least two no-confidence votes this weekend, made the announcement in parliament as part of a last-ditch attempt to create conditions for the adoption of a slimmed-down 2026 budget.

The proposal would raise the retirement age in France from 62 to 64.

Lecornu’s decision shows French President Emmanuel Macron’s recognition that shelving pension reform, which he sees as one of his key economic legacies, is the only way to ensure the survival of Lecornu, his sixth prime minister, in less than two years.

“Starting this autumn, I will propose to the parliament to suspend the 2023 pension reform until the presidential elections,” Lecornu said in his speech to MPs. he said.

“There will be no increase in the retirement age from now until January 2028.”

France has been mired in political stalemate since Macron’s snap election in mid-2024, with no camp left with a majority and parliament unable to agree on a budget to cut the deficit.

Lecornu’s predecessor, François Bayrou, was dismissed over a budget proposal.

With DPA and AP