Laurent Wauquiez announced on the 8 PM news two significant improvements for retirees, including pension increases starting January 1, aimed at offsetting inflation. An additional increase for vulnerable pensioners will follow on July 1. Wauquiez emphasized funding these changes through cuts to bureaucratic costs, estimating the financial impact at up to one billion euros. Discussions regarding a previous pension freeze are ongoing, with potential amendments expected in the upcoming Social Security budget debates in the Senate.
Positive Changes for Retirees Announced
In an engaging segment on the 8 PM news, Laurent Wauquiez shared exciting news for retirees. During his appearance on November 11, he outlined two significant advancements that he claims to have secured from Prime Minister Michel Barnier with a target implementation date of 2025. Wauquiez emphasized the importance of not allowing retirees to bear the burden of past budgetary mismanagement.
Pension Increases to Combat Inflation
Wauquiez revealed that starting January 1, there will be a pension increase that will benefit all retirees. This increase is expected to be approximately half of the current inflation rate, which stands at 1.8%. He further noted that on July 1, an additional increase will be introduced for the most vulnerable pensioners, aiming to provide them with an “anti-inflation shield” designed to protect their purchasing power against rising costs. Notably, pensions below the minimum wage will be safeguarded from any potential loss of purchasing power, a move that Wauquiez states will impact nearly half of all retirees.
Regarding the financial implications of these increases, Wauquiez provided specific examples: a retiree earning 1,000 euros monthly could see an annual increase of 200 euros, while those with a pension of 1,400 euros per month might receive an additional 300 euros. “Though these amounts are modest, they can make a significant difference for individuals relying on a smaller pension,” he acknowledged.
When questioned about the projected costs of these measures, Wauquiez estimated that the financial impact would be between 500 million and one billion euros, which he plans to fund through cuts to “administrative bureaucracy.” He pointed out that there are numerous organizations conducting studies with budgets that have spiraled out of control, emphasizing that while many discuss the issue, action is often lacking. “We have committed to freeing up one billion euros from these bureaucratic expenditures,” he stated.
Recently, the government had proposed a temporary freeze on pension increases, which was subsequently postponed to July, aiming to save four billion euros for the 2025 budget. This decision faced criticism from the Republicans, who labeled it as “unjust.” However, during a recent discussion, Budget Minister Laurent Saint-Martin hinted that the government might reconsider the pension freeze, with Prime Minister Barnier expressing openness to reversing the decision, contingent on finding alternative savings.
According to sources close to the Prime Minister, discussions between Barnier and Wauquiez have taken place, with plans for Wauquiez to share further details soon. An amendment reflecting these discussions is anticipated to be presented during the upcoming Social Security budget debates in the Senate, as reported by a parliamentary LR source.