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The following article was published in our article directory on October 27, 2010.
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French Pension Crisis has Highlighted the Problems of Aging

Article Category: Business

Author Name: Amanda xzh

In wave after wave of demonstrations going on for nearly two months, the wave of strikes, the French Senate on the controversial and sparked strong opposition of the retirement law was a decisive vote. Bill is finally passed, the French raise the retirement age from 60 to 62 years of age, the retirement age to receive full pension from 65 years of age to 67 years. While in France a massive protest broke out, but the media pointed out that compared with other European countries, France's new bill to increase the retirement age of 62 is still the lowest.

Minimal support for Sarkozy

Local 25, the French retirement system reform bill the Senate version of the National Assembly with the combination of earlier versions passed, then 27, then a vote by both houses and is scheduled to take effect on November 15 to become law.

Sarkozy government hopes that this bill passed both houses, and collective opposition protests will be reduced.

However, according to the French weekly "Sunday News" IFOP Institute poll published yesterday, Mr Sarkozy's support for the first time last week, down 29%, the highest office to a new low. In other words, Sarkozy fantasy retirement system reform in the political arena with little hope to flex its muscles.

Since 1982, France has been the mandatory retirement age of 60 years, French workers in the retirement pension to the Government. This measure is considered in the former Socialist President Francois Mitterrand during his tenure on the social progress made by one of the greatest contribution.

Rose to 200 million daily loss of -4 million euros

Pension system reform into a political party rally stunts

French unions and student groups, announced yesterday, we will go to launch at least two rounds of protests. French college students plan to take to the streets today, demonstrations, and the French unions have called on their members nationwide 28-day strike in the seventh.

French Finance Minister Christine Lagarde said yesterday that the French workers against the government's pension reform bill set off a wave of strikes and demonstrations in France, causing 200 million a day to -4 million euros in losses. Global stock markets also made chief economist forecasts for French economic growth rate may slow down the escalating strike 0.1% -0.2%.

For the "retirement reform crisis", Sarkozy argued that, given the rapid growth of the French population and a growing budget deficit, pension reform bill is "inevitable". But opponents have accused him of shelter the rich and the financial sector, so that ordinary workers pay the price.

Although most people in polls on the protests and expressed support for strike action and demonstrations so far each country can attract up to millions of people participate, but Sarkozy is convinced that as long as the retirement system, he will be right wing as a strong leader. It is reported that France is scheduled for the next 2012 presidential election, the main opposition Socialist Party vowed that if the party's candidate in the election, will the statutory retirement age will be transferred back to 60.

Retirement system faces a huge budget deficit

Average life expectancy and aging is the source

Retirement system can be regarded as the most controversial since Sarkozy took office a reform measure. The reason that such a large campaign Sarkozy Government, mainly because of the French retirement system is facing huge budget deficits, coupled with France's huge budget deficit, social health insurance, for France, a country with a population 60 million, the per capita debt would more than 1000 euros. Therefore, the reform of the system of payments imbalances, Sarkozy has become the government had to do the "surgery", he should first take the retirement system of surgery.

From the point of view, the French pension system, mainly due to living beyond their means to extend life expectancy and population aging. Average life expectancy for retirees to enjoy a substantial increase in pension age, the current per capita living after retirement, the French have been for 22 years. At the same time, the French population is also rapidly aging population over the age of 60 account for more than 25% of the employed population to retired population to 10:4.

Sarkozy Government believes that, since the average life expectancy, then it should work longer and pay the appropriate pension age. Therefore, the gradual retirement program proposed by the French extended from 60 years to 62 years; pay the pension age is also extended to 41.5 years from 40.5 years and years to receive full pension extended to 67 years. From the Government's program of view, to fill the current retirement system deficit in 2020 of 450 billion euros, 20 billion commitment by the workers, 50 million are taxes, in addition to 20 billion is borne by the state and enterprises.

But unions believe that this reform program is unreasonable. Because of this reform program, 45% of the burden is borne by the workers. And that is borne by the state and enterprises 55%, there are also part of the way through the completion of the tax, which is partly borne by the workers, it has been for the financial and economic crisis and declining living standards in the working class is extremely unfair.

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