El Gobierno francés plantea congelar las pensiones más altas para contener el déficit

La France's government is considering freezing higher pensions to curb the deficit, according to wire material. The reform of pensions was initially meant to delay the minimum retirement age from 62 to 64 years old at the beginning of the year. The strain on expenditure due to growing pension spending is a concern for many developed countries, with France being no exception.

The country is increasingly looking at measures to address its public deficit, a significant portion of which comes from this expenditure. French Minister of Economy and Finance, Roland Lescure, has opened the door to freezing the highest pensions next year or at least to a revaluation below inflation, in order to move closer to the deficit target of 3% by the end of 2029.

Current projections suggest the year will close at 5%, with 2025 being the highest at 5.1% in the Eurozone, only behind Bulgaria. The idea of moderating the indexation of pensions for the more well-off retirees, such as through a more moderate inflation-linked pension increase, is a question worth considering, according to Lescure.

Experts estimate that if only pensions were revalued by half the actual inflation (2.1% in July), it would only generate an additional 700 million euros for the budget, compared to 1,500 million if applied to those earning over 2,000 euros. Despite the government having to freeze the increase in the legal retirement age to avoid a vote of no confidence, freezing pension increases appears to be part of the necessary adjustment for the upcoming public accounts.

The government is planning to present its budget project for the summer. To address the deficit and also cope with the challenges of increased defense spending, pensions need to be part of the adjustment. Pensions already account for 58% of annual public spending in France, and in the last two fiscal years, the revaluation has added nearly 9,000 million to the bill.

The demographic scenario poses one of the main obstacles, with an aging population increasing the pension payments obligation while public opinion pressure grows on the policies. In France, 25% of the voters eligible to vote in the presidential elections of 2027 are pensioners. However, David Amiel, the Vice Minister of Public Accounts, assured recently that it is the intention of the government to attend its fiscal adjustment responsibility before facing the scrutiny of the voters with measures of public spending reduction.