skip to main content

France's pension reform bill passes hurdle

France - 7 Sept strike led to major disruption
France - 7 Sept strike led to major disruption

France's pension reform bill, which includes a rise in the retirement age, cleared its first main hurdle today when it was approved by the lower house.

Several thousand people, led by trade unionists, converged in front of the National Assembly brandishing banners and waving scarlet flares demanding a withdrawal of the bill ahead of the vote.

After massive street protests and strikes that disrupted air and rail traffic on 7 September, unions have called for workers to down tools again on 23 September as the bill winds its way through parliament.

The vote took place after a marathon overnight debate and some vitriolic exchanges with 329 members approving the bill and 233 opposing it.

However, the vote was never in real question as President Nicolas Sarkozy's ruling party retains a comfortable majority in the lower house of parliament.

Facing a tough re-election battle in 2012, Mr Sarkozy and his centre-right government are standing firm on a measure that would raise the minimum retirement age to 62 by 2018.

It currently stands at 60, one of the lowest levels in the EU.

Following the protest on 7 September, the government has made minor adjustments to the bill, which also raises to 67 from 65 the age when people are entitled to retire on a full pension.

The age change is a key part of France's plan to balance the system's finances by 2018 and reduce debts bloated by the recession of 2008-2009.

Mr Sarkozy told senators from his party today that there could still be room for amendments to the final text, although not its core.

The bill will now be debated in the upper house at the beginning of October with the government wanting to pass it by November.

A BVA poll on Wednesday showed almost 60% of people want the government to make more concessions on the bill.

However, most French voters are resigned to the need to overhaul the loss-making pension system in some way.

Analysts say the unions may struggle to turn their protests into something big enough to force the government to backtrack.