French Court of Audi­tors publishes second report on pension conclave.

VS – 04/2025

Since 27th February, the social partners in France have been negotiating a reform of the pension system (see News 03/2025). The so-called ‘pensions conclave’ has now agreed on a common objective and a new roadmap for further negotiations. At the same time, the French Court of Auditors has published its second report on the impact of the French pension system on competitiveness and employment. In its report, it states that the current pension system lacks fairness and questions the adjustment of pensions based on price trends. The Court of Audit also identifies important levers for the upcoming reform.

Fair­ness within a gener­a­tion must be guar­an­teed

In its report, the Court of Audit emphasises the importance of further increasing the employment rate of older people. However, this requires employment policy measures. The latest pension reforms and, in particular, the increase in the retirement age for long-term insured persons have led to a significant increase in the labour market participation of older people. However, this has been accompanied by a significant increase in periods of unemployment and sickness in the years before retirement among women, workers and people with health problems.

The Court of Audit's report also highlights differences in the longer life expectancy of managers compared to blue-collar workers. An increase in the standard retirement age would therefore have a different impact on the two groups. It also emphasises that it is mainly the middle and higher income groups that benefit from many pension regulations.

At the presentation of the report, the President of the French Court of Auditors and former EU Commissioner, Pierre Moscovici, emphasised that fairness within a generation in the French pension system must be at the centre of the reform discussion. At present, this is not guaranteed.

Sustain­ability factor required for pension adjust­ments

The Court of Auditors' report proposes ending pension adjustments based on price trends. The sharp rise in inflation as a result of Russia's war of aggression against Ukraine has led to pension increases in recent years that were significantly higher than the rise in wages. The report emphasises that pensioners should bear the same economic risks as those in employment. The indexation of pensions should therefore be linked to wage development on the one hand and, analogous to the sustainability factor in Germany, take into account the development of the ratio of pensioners to contributors on the other.

New roadmap for the nego­ti­a­tions

Following the withdrawal of the second and third largest trade unions CGT and Force Ouvrière (FO) as well as the Association of Liberal Professions and Craftsmen U2P, the social partners remaining at the negotiating table have agreed on common objectives and a new roadmap for the negotiations. The parties agreed on the formulation that everyone, i.e. employees, employers and pensioners, must make a contribution to restoring financial equilibrium.

Next steps

The next meeting on 24th April will be devoted to funding issues and the two subsequent meetings on 30th April and 15th May to the issue of system governance. The aim is to reach an agreement on reform proposals before the last scheduled meeting on 28th May. The social partners do not rule out continuing the talks in June if necessary.

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