France Proposes Suspending Pension Reform Until 2027 Election

In a major policy reversal, French Prime Minister Sebastien Lecornu has proposed suspending the country's contentious pension reform until after the 2027 presidential election. The announcement represents a significant concession following months of widespread protests and strikes that paralyzed France last year over the legislation that raised the retirement age.

Suspension Terms and Financial Impact

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The proposed suspension would maintain the current legal retirement age and keep the required contribution period at 170 quarters until at least January 2028. Lecornu acknowledged the substantial financial cost of this decision, estimating it at €400 million in 2026 and €1.8 billion in 2027, while emphasizing that the measure "cannot come at the price of a higher deficit" and would require offsetting savings. Approximately 3.5 million French citizens would benefit from this suspension.

Political Reform and Constitutional Changes

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The Prime Minister announced he would renounce the use of Article 49.3 of the Constitution, the controversial mechanism previously used to pass the pension reform without a parliamentary vote. "I will no longer use Article 49.3. Debates will go to the end, to the vote," Lecornu stated, calling this "a true rupture" in France's political practice. He also outlined plans for a national conference on pensions and work involving unions and employers to seek consensus on future reforms.

Broader Institutional Reforms

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Beyond domestic pension policy, Lecornu addressed France's overseas territories, announcing that a constitutional amendment for New Caledonia would be presented before year's end, allowing New Caledonians to be consulted in spring 2026. He described this as "an urgent step to preserve peace and stability" in the French Pacific territory. The government will also pursue constitutional projects concerning Corsica and introduce a new decentralization law by December to strengthen local governance.