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French PM Bayrou to re-open talks on Macron's unpopular pension reform Europe

French Prime Minister Francois Bayrou told the National Assembly Tuesday that he will re-open talks with the country's trade unions and employers' associations on President Emmanuel Macron's unpopular pension reform. Bayrou said earlier in the speech that reforming France's pension system was "absolutely vital".

Issued on: 14/01/2025 - 02:37Modified: 14/01/2025 - 16:04

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Accept Manage my choices French Prime Minister François Bayrou delivers his general policy speech at the National Assembly in Paris, France, January 14, 2025. © Benoît Tessier, Reuters

French Prime Minister Francois Bayrou on Tuesday opened the door to renegotiating a 2023 pension reform, in a bid to win over left-wing lawmakers he needs to pass the 2025 budget.

Bayrou, who delivered the message to lawmakers in a key policy speech setting out his governing principles, proposed to entrust trade unions and employers groups with a three-month mission to find a new deal on pension reforms.

He said the minimum age of 64 to draw a full pension, the most contested part of the 2023 reform, should not be a taboo.

Read moreStaying in office is the main challenge for troubled France's new government settling in

But he warned that France's growing debt pile was a "sword of Damocles" hanging over future generations' heads, and that the new "conclave" in charge of exploring a new pension pact will have to propose a deal that is financially balanced.

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If it can't be balanced, the current deal would remain in place, he said.

Bayrou also said the working group will be formed after a flash financial audit of the pension system is made public by the respected French auditing court.

His speech comes after a tumultuous 2024 for France when French President Emmanuel Macron shocked the nation by calling early elections, only to lose his working majority in parliament just as public finances went off track in the euro zone's No. 2 economy.

Bayrou's government, formed last month after the collapse of his predecessor's administration, is trying to secure assurances from some opposition parties - the Socialists in particular - that they will not vote against its 2025 budget, or seek to derail his fragile government.

The Socialists, who voted down the previous budget proposals in December in conjunction with far-right lawmakers, precipitating the fall of Michel Barnier's government, have made concessions on the 2023 pension reform a condition for support.

(Reuters)

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• France
• François Bayrou
• pension reform
• Budget
• Emmanuel Macron

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