French PM Faces Pension Reform Crisis Amid Rising Debt and Political Turmoil
January 13, 2025
Bayrou is attempting to engage left-leaning parties in budget negotiations, rather than focusing on the far-right National Rally, which complicates the political landscape.
The political backdrop includes Macron's acknowledgment of the instability caused by the dissolution of the National Assembly, with new elections not scheduled until mid-2025.
President Macron's pension reform, which raises the retirement age from 62 to 64, has been a focal point of mass protests throughout 2023 and continues to stir controversy.
François Bayrou, the newly appointed Prime Minister, is under pressure to secure support for the 2025 budget, especially from the Socialists, who previously voted against budget proposals that contributed to the fall of the last government.
Bayrou's government lacks an absolute majority in the National Assembly, making the upcoming budget discussions critical for its political survival.
The leader of the Socialist Party insists that the public will not tolerate a complete dismissal of their proposals by the Prime Minister.
While Bayrou has ruled out pausing the pension reform, he has committed to re-evaluating it transparently with social partners, starting with a review by the Court of Auditors.
Le Pen's National Rally party, the largest single party in the National Assembly, poses a significant challenge, threatening opposition to any budget that raises healthcare costs or imposes new business taxes.
Despite the lack of support from the National Rally for a motion of censure, the government faces ongoing pressure to secure budget approval and avoid future censure motions.
One of Bayrou's immediate challenges is preparing the 2025 budget to satisfy both far-right and left-wing MPs, who previously contributed to the downfall of the last government.
Bayrou is set to deliver a crucial political speech regarding the budget and pension reform, which is anticipated to shape the government's future direction.
The ongoing debate centers around the contentious pension reform, which has led to demands from the Socialist Party for a 'suspension' of the reform, a request opposed by the right-wing and some members of Macron's bloc.
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