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4d ago

France Introduces Capitalisation to Pension Reform Talks Amid Deficit Concerns

For the first time, French pension negotiations formally consider a hybrid model blending pay-as-you-go and capitalisation, as unions resist employer-backed proposals.

Les partenaires sociaux sont cependant opposés, pour certains, à cette éventualité.
Manifestant contre la réforme des retraites en 2023.
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Overview

  • Capitalisation is now officially on the agenda in France's pension reform discussions, marking a significant shift in the debate.
  • Employer groups Medef and CPME are advocating for a hybrid system combining the current pay-as-you-go model with capitalisation elements.
  • The French government, represented by Minister Astrid Panosyan-Bouvet, supports exploring capitalisation, noting that 15 million French citizens already participate in such savings plans.
  • Unions CGT and FO remain strongly opposed to capitalisation, creating uncertainty about the outcome of ongoing negotiations.
  • The Cour des Comptes has projected a €15 billion pension system deficit by 2035, driving the push for new funding mechanisms.