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New showdown for France’s Macron as pension reform hits parliament

French President Emmanuel Macron's government faces a crunch week of defending its contested pension reform, with fireworks expected in parliament and mass strikes and demonstrations planned on the streets.

New showdown for France's Macron as pension reform hits parliament
France is braced for more protests as the government's pension reforms go before Parliament (Photo by LOIC VENANCE / AFP)

Walkouts and marches are planned for Tuesday and Saturday, while left-wing opponents of the minority administration have already filed thousands of amendments to the reform bill ahead of the parliamentary debate beginning on Monday afternoon.

Trains and the Paris metro are again expected to see “severe disruptions” according to operators, and around one in five flights at Orly airport south of the capital are expected to be cancelled on Tuesday.

Macron’s plan to raise the age of retirement is a flagship policy of his second term in office, which he has defended as “essential” given forecasts for deficits in the coming years.

But it is widely unpopular and last week’s demonstrations brought out 1.3 million people nationwide, according to a police count, while unions claimed more than 2.5 million attendees.

Either way, it marked the largest protest in France since 2010.

“It’s out in the country that this will be settled, either by a revolt or by enduring disgust” with the government, said Francois Ruffin, an MP for the hard-left La France Insoumise.

“The government is no longer trying to convince people, but just to win, win by resignation and exhaustion” among opponents, he added.

Macron’s government have so far stuck to their guns, with Prime Minister Elisabeth Borne on Sunday offering a key concession to win support from the conservative Les Républicains party.

While the reform will set a new legal minimum retirement age of 64 for most workers – up from 62 – Borne said people who started work aged between 20 and 21 will be covered by an exemption allowing them to finish work at 63.

Calling the offer a “patch”, the head of the CFDT union Laurent Berger said that the move “isn’t the response to the huge, geographically and professionally diverse mobilisation” that has swept France.

But Les Républicains leader Eric Ciotti told the Parisien newspaper that he would back the reform, potentially securing a majority for the government.

Although re-elected to the presidency last year, Macron also lost his parliamentary majority and has been forced either to cobble together compromises or ram through laws using an unpopular constitutional side door.

After an attempt to reform France’s pension laws in 2019 were stymied by the coronavirus crisis, the changes mark another step by reformist Macron in aligning France’s economy with its EU neighbours – most of which already have higher retirement ages than the proposed 64 years.

He and his ministers aim to get the pensions system out of deficit by 2030 by finding around €18 billion of annual savings – mostly from getting people to work for longer and abolishing some special retirement schemes.

But while Borne and others have insisted theirs is a fair reform, critics say that women will on average have to wait still longer for retirement than men, as many have interruptions in their careers from childbearing and care responsibilities.

Opponents also say the reform fails to adequately account for people in physically strenuous jobs like builders and doesn’t deal with companies’ reluctance to hire and retain older workers.

Borne said the government would pile pressure on companies to end the practice of letting go of older employees, which leaves many struggling to find work in their final years before pension age.

“Too often, companies stop training and recruiting older people,” Borne told the JDD weekly on Sunday.  “It’s shocking for the employees and it’s a loss to deprive ourselves of their skills.”

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LIVING IN FRANCE

Why you might get a letter about French benefits

France is introducing stricter residency requirements for certain benefits, including those that foreigners in France can qualify for, and has begun sending letters out to recipients.

Why you might get a letter about French benefits

In April, the French government passed a decree that will tighten up residency requirements for different types of benefits, including the old-age top-up benefit.

Previously, the rule for most benefits was residency in France for at least six months of the previous year to qualify, though some required eight months and others, like the RSA (a top-up for people with little to no income) requires nine months’ residency per year.

However, the government announced in 2023 its intention to increase the period to nine months for several different programmes – which was put into decree in April – in an effort to combat social security fraud, as well as to standardise the system.

The changes, which will go into effect at the start of 2025, do not affect access to healthcare – foreigners can still access French public healthcare as long as they have been resident here for a minimum of three months. 

Similarly, the rules for accessing chômage (unemployment benefits) have not changed yet. Currently, you must have worked for at least six months out of the last 24 months to be eligible, as well as meeting other criteria including how you left your previous job.

This may change in the future, however, with the French government poised to reform the unemployment system again.

READ MORE: How France plans cuts to its generous unemployment system

Which benefits are affected?

The old-age benefit – or the ASPA – will apply the new nine month requirement. Previously, people needed to be in France for at least six months out of the year to qualify.

If you receive this benefit already, you will probably get a letter in the mail in the near future informing you of the change – this is a form letter and does not necessarily mean that your benefits will change.

If you are already a recipient – and you live in France for at least nine months out of the year – then you do not need to worry about your access to the ASPA changing.

If you want to access this benefit, it is available to certain foreigners, even though it is intended to help elderly (over 65) French citizens with low state pensions.

It is only available to foreigners who have been living legally in France for at least 10 years, and starting in 2025 you will need to spend nine out of 12 months a year in France. You can find more information at THIS French government website.

Otherwise, prestations familiales, or family benefits will be affected by the new nine month residency rule. These are available to foreigners with valid residency cards, as long as their children also live in France.

This includes the family allowance (given out by CAF), which is available for families on low incomes with more than two children, as well as the ‘Prime à la Naissance’, which is a means-tested one-off allowance paid in the seventh month of pregnancy to effectively help with the start-up costs of becoming a parent, will also be affected by the new nine month residency rule. 

READ MORE: France’s family benefit system explained

If you receive these benefits already, then you will likely receive a letter explaining the changes shortly.

And finally – the RSA, which is the top-up benefit for people with little to no income, was already held to the nine month standard, so there will be no residency-related changes.

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