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16 November 2012

IPE: France lagging far behind European counterparts on pensions reform


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Pensions experts have claimed that France remains "far behind" its European counterparts when it comes to implementing long-term, sustainable pensions reform, and the current economic environment will "inexorably" lead to the failure of the country's social system.


Jean-Michel Charpin, economist and general inspector of finance, pointed out that international organisations such as the IMF and the European Union had been vocal critics of the reforms implemented in France since 1992. According to him, the criticisms centred on the fact that French governments have continually failed to launch a real capitalisation system, in spite of the creation of the PERCO plan in 2003. "The last pension reform introduced in 2010 sought to set up a sustainable financing plan for the pay-as-you-go system until 2020, but only with a few measures such as pushing up the legal retirement age and increasing the length of contributions – this is clearly not enough", he said.

Raphael Hadas-Lebel, president of the Conseil d'Orientation des Retraites (COR), welcomed the agreements reached with social partners in the recent past, which he said acknowledged France's demographic issues and the link between employment and retirement. But he also conceded that social partners did not see eye to eye on the best tools and measures for implementing a financial plan for the first pillar.

Raymond Soubie, who had been an adviser to Nicolas Sarkozy, said that when the former president introduced the 2010 reform, his goal had been to refinance the deficit of the first pillar and find a sustainable financial plan for the next 10 years.

Full article (IPE subscription required)



© IPE International Publishers Ltd.


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