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France Pension Bill [UPSC Current Affairs]

In March 2023, protests erupted across France just after the government adopted highly disliked pension reforms after surviving two no-confidence votes. What is the new proposed pension legislation of the French government? Read on to know more. 

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What is the proposed Pension Reform in France?

  • It raised the retirement age in France from 62 to 64.
  • The proposed changes will be gradually implemented.
  • The age will increase by three months each year until 2030. 
  • People in physically or mentally arduous jobs will maintain the right to retire early.
  • From 2027, the majority of the workers will have to make social security contributions over 43 years rather than 42 years in order to draw a full pension. 
  • Similarly, the United States is gradually raising its retirement age to 67, and Britain plans to raise the age to 68 between 2037 and 2039.

 Why does the government say change is needed?

  • The French government says that the proposed reform is required to keep the pension budget in check.
  • The country’s pension system costs approximately 14% of the GDP, making it the third highest within the OECD behind Italy and Greece.
  • The existing pension system will record an annual deficit of 13.5 billion euros by 2030, as per the government’s forecasts.

Why are people protesting against the new pension bill?

  • The government’s move to use Article 49.3 of the Constitution sparked more protests and led to two failed no-confidence votes.
  • Article 49.3 allows governments to bypass the National Assembly and force through bills without a vote and is widely held as undemocratic.
  • The protestors have taken various means such as strikes across public services and blockades to draw the attention of the world media.

Way forward:

  • The central government needs to uphold the deep constitutional values of France while framing any laws having long-lasting repercussions for the masses. French society has been a symbol of beautiful, functioning democracy for quite long and therefore the displeasure of the public must be taken into consideration going forward.

France Pension Bill:- Download PDF Here

Related Links
India-France Relations National Pension Scheme (NPS)
Pradhan Mantri Fasal Bima Yojana (PMFBY) IRDA
UPSC Calendar 2023 UPSC Eligibility Criteria


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