France’s Economic Minister Outlines Pension and Defense Reforms
Pension Reforms
French Economy Minister Éric Lombard has disclosed his perspective on pension reforms, suggesting a potential increase in contributions from retirees and a need for extended working hours for the employed.
Lombard acknowledged the "rather logical" observation of the Court of Auditors, which indicated that retirees, on average, enjoy a higher quality of life than working individuals. In light of this, he expressed support for measures to rebalance the scales by potentially adjusting pension linkage to inflation.
The minister emphasized that any such decisions would ultimately rest with social partners engaged in ongoing discussions.
Defense and Geopolitics
Beyond pension reforms, Lombard addressed the geopolitical landscape and its implications for Europe. He stressed the urgency for European countries to take control of their destiny, highlighting the need for a collective defense strategy and economic resilience.
Working Hours and Economic Growth
Lombard pointed to Germany’s higher employment rate as a potential model for France, suggesting that extended working hours could mitigate the nation’s budget deficit. He proposed a timeframe of 5-10 years for public discourse and reflection on the future of France’s economic model.
Corporate Taxation
Regarding corporate taxation, Lombard reaffirmed the government’s commitment to limiting the planned surtax on large companies (over €1 billion in revenue) to a single year, effective in 2025. This measure aims to maintain France’s attractiveness as a business destination in an increasingly competitive global environment.
Key Excerpts
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"I am ‘rather’ in favor of an increased contribution from retirees." – Éric Lombard on pension reforms
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"It is ‘quite illogical’ that retirees’ standard of living is, on average, higher than that of employees." – Éric Lombard on the observation of the Court of Auditors
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"We are at a moment of historic geopolitical upheaval." – Éric Lombard on the global landscape
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"If we had the employment rate of Germany, we would not have a deficit." – Éric Lombard on the potential benefits of increased working hours
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"We have made a commitment to keep [corporate taxation] attractive." – Éric Lombard on the surtax on large companies
