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The following article was published in our article directory on November 16, 2010.
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France Issued New Retirement System Act

Article Category: Business

Author Name: Amanda xzh

French Constitutional Council recently adopted a pension reform bill, President Nicolas Sarkozy signed the bill, the new retirement law was born. That means breaking away from mandatory retirement age of 60 years, the implementation of the new retirement system.

France bid farewell to 60 years old retirement system

Under the new retirement law, the French statutory retirement age and of legal age to receive full pension will be delayed for two years, namely: statutory retirement age gradually from the current 60-year-old upwards of 62 years old, unpaid pension age who receive enough full retirement age gradually from the current 65 years of age upwards to 67 years, and this is the most critical pension reform and the parties dispute the content focus. Act as the retirement age to pay old-age insurance 41 years from 2012 upwards to 41.5 years in 2020, most French people over the next decade at least 41 years of work before retirement.

This "historic" reform aroused great controversy in France, the reform process is very difficult, starting from April the French retirement reform process, the Labor Department began discussions with representatives of both employers and employees to the pension system reform on October 27 the retirement bill is finally adopted by Parliament text, after more than seven months. In the meantime, trade unions launched a nationwide strike for at least 8 times and protest marches, and caused France a few weeks, "oil shortage" of the French Economy Minister Christine Lagarde said the strike caused economic losses reached 200 million per day -4 million euros. However, the Government was insistent, Sarkozy has long set the tone for the reform of the retirement system, pension system reform is imperative, the Government on key issues and objectives of the reform will not change. Retirement of the draft law in Parliament have almost no suspense: ruling UMP party holds an absolute majority in the National Assembly, holds more than half of seats in the Senate, after fighting to the centrists has an absolute majority.

Had to change the retirement system

Currently, more than 1,500 million retirees in France, most people receive € 1,400 monthly pension to € 1,600, of which 1 / 10 by the state retirement pension debt. Aging population, pension deficits, unsustainable pension system, pension reform is one of the motives. According to estimates of the Steering Committee of the French retirement, if you do not reform the existing pension system, from now to 2020, pension deficits will be up to 450 million euros. French ruling party in parliamentary debate as far as the above-mentioned reasons, stressing the urgency of pension reform and necessity.

Analysts pointed out that the slow growth of the French economy, high unemployment, the state's financial shortfall forced to change the retirement system is the deeper reason. Data show that in the past 20 years the French economy experienced a severe recession, per capita GDP in the international ranking has dropped significantly. At the same time, the French unemployment rate is high, the local unemployment rate is currently close to 10% increase in unemployed persons to the proportion of premiums paid and received more balance, and a growing hole in the national budget deficit in 2009, the French budget deficit to 144.8 billion euros, accounting for 7.5% of GDP, far exceeding the EU's "stability and growth pact," the provisions of the 3% limit. Economic growth and employment sufficient to support high welfare, can not bridge the gap in the case of the pension deficit, the French can only opt for retirement system reform.

In the face of challenges

Retirement rise to different responses by the bill, many people expressed by the retirement law was "bitter", including the French democratic movement Main Xibei Lu. Sarkozy said the bill through to save the retirement pension system, so that France can continue to provide pensions for retirees. He said he heard the voice of the people, understand people's anxiety, and are willing to give answers at the appropriate time.

But the Socialist Party and the Communist Party that marked the reform of "unfair stigma," the ruling party pushed through the bill. Socialist Party general secretary Oberry announced that, once the Socialist Party won the 2012 presidential elections, France will resume mandatory retirement age of 60 years of age.

In addition, most union leaders, especially the French Federation of Labour (CGT) General Secretary Di Boye said the union will fight in the end of 60-year-old retirement system, even if the retirement bill was passed.

Although the retirement system reform bill signed into force by the president, but Sarkozy's support rate highest since 2007, the lowest since he took office, retirement is still divided on the issue and will continue to cause social contradictions and conflicts, left the game to send have targeted more than a year after the presidential election.

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