France's pension system is projected to face increasing deficits in the coming decades, despite a reform in 2023 aimed at stabilizing it, according to the public audit office. The Cour des Comptes' report was requested by Prime Minister Francois Bayrou to provide clarity on the system's financial status during ongoing negotiations with unions and employers. The reform, which raised the retirement age to 64, is facing opposition from some unions and political parties.
The audit office emphasized the necessity of maintaining the 2023 reform, warning that rolling it back would have significant financial implications. The retirement age increase, designed to address the system's funding shortfall, is projected to keep the deficit stable until 2030 but will then escalate, leading to a substantial increase in public debt by 2045.
Head of the audit office, Pierre Moscovici, stressed that the reform would not suffice to address future financial needs. Discussions are ongoing regarding potential changes to the pension system, with raising the retirement age to 65 being highlighted as the most effective option, estimated to generate an additional 17.7 billion euros.
The audit office's findings underscore the challenges facing France's pension system and the need for measures to ensure its sustainability amidst a growing number of retirees and increasing financial pressure.