France delays retirement reform that precipitated mass strikes – Times of India

PARIS: France‘s authorities is delaying a divisive overhaul of the nation’s retirement system till at the least the tip of the yr due to the financial disaster unleashed by the pandemic.
Prime Minister Jean Castex introduced after assembly with unions Friday that the pension reform “will be maintained.” But he added that the federal government will prolong negotiations on particulars of the plan over the approaching months, as a substitute of pushing to finalise it this summer time.
The plan would finish some particular pension schemes beneath which sure folks, like railway staff, are allowed to take early retirement and others, like legal professionals, pay much less tax. In addition, the federal government is discussing with unions whether or not to boost the retirement age from 62, or to extend taxes to make the pension system financially sustainable in a rustic with a excessive life expectancy.
The plan prompted weeks of crippling strikes and protests by unions, who concern the modifications will pressure folks to work longer for much less cash. President Emmanuel Macron argues the brand new system, which goals to unify 42 state-funded pension regimes, can be fairer.
It was a key promise in Macron’s 2017 presidential marketing campaign, and the federal government had hoped to cross the pension regulation by summer time. But now the economic system is predicted to shrink at the least 11 per cent this yr, rising unemployment and threatening a lot of Macron’s plans.
The authorities is now specializing in a 100-billion-euro financial restoration package deal as a substitute.

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