France’s government has moved to delay the implementation of its controversial 2023 pension reform, a decision that has reignited political and public tensions. The reform, which includes raising the retirement age from 62 to 64, will now take effect in January 2028, beyond President Emmanuel Macron’s current term.
The announcement came as part of a new austerity budget bill, unveiled on Thursday by Prime Minister Sébastien Lecornu. The decision follows weeks of political drama, including Lecornu’s brief resignation and reappointment after his two predecessors were ousted in parliamentary showdowns over cost-cutting measures.
Macron’s centrist bloc has struggled to govern effectively since losing its parliamentary majority in last year’s snap elections. In an effort to survive a looming confidence vote, Lecornu conceded to the Socialists’ demand to postpone the reform, though they had initially called for it to be scrapped entirely.
The government estimates the delay will cost €100 million in 2026 and €1.4 billion in 2027. To offset the shortfall, it plans to raise taxes on private health insurance companies and freeze pension increases during that period.
However, the move has drawn sharp criticism from labour unions and retirees. The CFDT’s Yvan Ricordeau warned that modest pensioners “cannot bear such a measure,” while CGT’s Denis Gravouil argued that the higher taxes would likely be passed down to workers and retirees through increased insurance premiums.
France’s private health insurance system supplements the public scheme, helping citizens cover additional medical costs. Critics fear the new tax burden could make coverage unaffordable for many.
The pension reform, initially forced through parliament in 2023 without a vote using a controversial constitutional power, sparked months of mass protests. Lecornu has since pledged to avoid such unilateral tactics, promising that future laws will undergo full parliamentary debate and vote.
With France’s political gridlock deepening, the postponed reform highlights the government’s struggle to balance fiscal discipline with social stability.
