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France News Today

French news in English

Saturday, November 23, 2024

France Delays Pension Indexation Amid Budget Cuts

Published: 2024-10-03

The French government has announced a delay in the indexation of pensions to inflation, sparking reactions among retirees.

This measure, affecting around 14 million people, is part of a broader plan to reduce the public deficit to 5% of GDP by 2025. Retirees will see their pensions remain unchanged for six months in 2025, a move expected to save approximately 4 billion euros.

The decision aligns with efforts to address a 60 billion euro budgetary challenge, which includes both increased revenue and spending cuts.

While the government defends this as a necessary step, it has drawn criticism for impacting the purchasing power of retirees, a group previously shielded from such measures.

The delay in pension increases is part of a larger strategy to balance fiscal responsibility with economic growth.