PARIS (AP) — France’s new prime minister François Bayrou announced Tuesday the renegotiation of a contested plan raising the retirement age from 62 to 64, in a crucial move to seek more stability for his minority government.
In his first address to lawmakers at the ºÃÉ«tv Assembly, Bayrou said: “I’m choosing to put this subject back on the agenda, with the social partners.â€
Bayrou vowed to seek “a new path of reform, without any totems or taboos, not even the retirement age,†as long as the financing for the changes is guaranteed.
President Emmanuel Macron’s plan to unleashed months of mass protests from January to June 2023 that damaged his leadership.
Bayrou also outlined other top priorities, including key budget decisions, one month after by President Emmanuel Macron.
What is Bayrou proposing?
Bayrou urgently needs to pass a budget bill for 2025. Following the collapse of the previous government, an emergency law has been approved to enable the state to levy taxes from Jan. 1, pay basic expenses and avoid a shutdown.
But only a proper budget would help reduce France’s deficit and allow key expenses such as defense measures needed amid the .
Bayrou also stressed the need for France and the European Union to remain strong in the face of recent Donald Trump's recent comments.
“The president-elect of the United States himself, unprecedentedly, articulates threats to annex sovereign territories: Greenland, the Panama Canal and even Canada,†he regretted.
Financial markets, ratings agencies and the European Commission are pushing France to comply with EU rules limiting debt and keep France’s borrowing costs from spiraling. That would .
France's deficit is estimated to reach 6% of its gross domestic product in 2024. Bayrou on Tuesday said the government was aiming for a deficit of 5.4% this year, with the goal to reduce it to 3% —in line with EU rules— by 2029.
“Major spending cuts will be proposed,†he said, without providing concrete details.
Why are pension reform talks key?
The pension reform, which was in April 2023 despite mass protests, has gradually been implemented.
The Socialists urged Bayrou to announce a “suspension†of the reform with the aim of backtracking on the age of 64 and introducing specific measures for those who have long careers and certain professions considered to be hard work.
Bayrou on Tuesday stopped short of announcing such move, yet his proposal to renegotiate the measure appears as a hand stretched out towards the left.
The new prime minister wants to secure a nonaggression pact with the Socialists so that they wouldn’t support any future move to topple the new government.
He suggested the age of 64, which was the most criticized change, could possibly be decreased depending on the outcome of the negotiations.
“We cannot deteriorate the financial balance†of the pension system, Bayrou insisted.
On the other side of the political spectrum, the conservatives have warned against any suspension of the pension changes.
“If we were to repeal the pension reform, the cost would be 3.4 billion euros ($3,47 billion) in 2025 and almost 16 billion ($16.3 billion) in 2032,†the president of the Senate Gérard Larcher, a conservative, said.
Bayrou said a so-called “conclave†with representatives from workers’ unions and employers’ organizations would be aimed at negotiating for three months with a strict deadline for a potential deal. If they were to agree on pension changes, the proposals would be introduced into law.
Otherwise, Macron’s initial plans would apply, he said.
Can the government be toppled again?
Bayrou’s Cabinet relies on a fragile deal between Macron’s centrist allies and conservatives of The Republicans party who even together have no parliamentary majority.
The previous government was in place for only three months before being brought down by opposition lawmakers from both the left and the far right amid a budget dispute.
This time, the Socialists said they were open to talks with Bayrou while staying in the opposition.
The head of the Socialist group at the ºÃÉ«tv Assembly, Boris Vallaud, said his party accepts the offer to reopen negotiations on pension changes. Yet he already warned the goal was still to withdraw the reform and therefore maintain the retirement age to 62.
Meanwhile, the possibility of another no-confidence vote is still looming.
The hard-left France Unbowed party refused to enter into talks with the government and announced it would file a no-confidence motion.
“The sooner you’re gone, the better,†Mathilde Panot, head of the hard-left France Unbowed group of lawmakers, told Bayrou.
A vote later this week would have little chance of succeeding as the far right appears unwilling to support such move in the immediate term.
Yet the question could be raised again during the future budget debate at parliament, with more uncertainty on the result.
Does the far right still have leverage?
Far-right leader Marine Le Pen — Macron’s fiercest rival — was instrumental in ousting the previous government.
Bayrou consulted her when forming the new government, and Le Pen remains a powerful force. Her ºÃÉ«tv Rally party has the largest single group in the ºÃÉ«tv Assembly, France's powerful lower house of parliament.
In recent days, Bayrou's government sought to sideline Le Pen by negotiating instead with the Socialists, the Greens and the Communists on budget issues.
ºÃÉ«tv Rally lawmaker Jean-Philippe Tanguy said the “red lines†remained the same. The party said it would oppose any budget that would raise the cost of medication, provide more health care for migrants staying illegally in the country and impose new taxes on businesses.
“We tell the French : hold on, we're arriving," Tanguy said.
But Le Pen faces her own headaches in the months to come — a March court ruling over alleged illegal party financing could see her .
