French Prime Minister Suspends Pension Reform Amid Political Crisis

French Prime Minister Sébastien Lecornu announced on Tuesday the suspension of the controversial pension reform, which aimed to raise the retirement age from 62 to 64. This decision comes as a strategic move to prevent the collapse of his minority government.

In a policy speech at the National Assembly, Lecornu stated that the reform would be put on hold until after the 2027 presidential election. He emphasized that the suspension would cost €400 million in 2026 and €1.8 billion in 2027, benefiting 3.5 million French citizens. Lecornu noted that these costs would need to be offset through savings measures to avoid increasing the national deficit.

The Socialist Party, a key opposition group, had demanded the repeal of the pension reform. Boris Vallaud, president of the Socialist group in the National Assembly, described the suspension as a "first step" toward scrapping the law. He indicated that his colleagues were ready to engage in parliamentary debate and would not support the upcoming no-confidence motions.

Lecornu faces two no-confidence motions scheduled for Thursday, one from the hard-left France Unbowed and the other from the far-right National Rally. While these parties alone lack the seats to topple the government, their efforts could succeed if the Socialists and other left-wing groups join forces.

President Emmanuel Macron's decision to reappoint Lecornu as prime minister is seen as an attempt to stabilize his second term amid political turmoil. Macron has warned that any successful vote of no confidence would lead to the dissolution of parliament and prompt new elections.

The pension reform, initially passed without a vote in 2023, had sparked widespread protests across France. The government's justification for the reform was to address a projected shortfall in the pension fund. However, opposition parties and unions have consistently called for its suspension or repeal.

Lecornu's announcement marks a significant concession aimed at building trust and fostering dialogue with opposition parties to ensure political stability and address the nation's economic challenges.