Pension reform to finance other expenses

Since Emmanuel Macron mentioned it earlier this week to journalists from the presidential press, thehe subject is coming back in force in the public debate. The president does not rule out putting pension reform back on the table next month, through an amendment to the Social Security budget. A reform to absorb the deficit of the pension system but also to finance other expenses.

The arguments have changed a lot since Emmanuel Macron’s first term. He wanted, at the time, to set up a universal points system, fairer and more equitable. The argument this time is different. The executive relies first of all on the report of the Pensions Orientation Council (COR), published two days ago, which provides for a further deterioration in the accounts. Between 7.5 and 10 billion euros in deficit by 2027. Between 12.5 and 20 billion euros in pension system deficit by 2032.

The first argument is therefore budgetary. The savings measures sought by the government are there. Hence a necessary reform, whether by pushing back the legal retirement age, to 64 or even 65, or by increasing the contribution period. Neither of these two doors is now closed. Another way, however, is excluded: there is no question of lowering the level of retirement pensions.

But this financial windfall would not only be intended for the pension system, and it is precisely in this that the discourse has clearly evolved compared to the first term of Emmanuel Macron.

Today the contributions of active people finance the pensions of retirees. Pensioners represent 14% of the GDP, of the national wealth created in one year. Why not direct this money towards other expenses, wonders aloud the President of the Republic: expenses, urgent and necessary like school, health and the ecological transition, proposes Emmanuel Macron. A paradigm shift that deserves to be seized by the public debate.


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