PARIS, Jan 14 (Reuters) - French Prime Minister Francois Bayrou has signaled openness to renegotiating a contested pension reform in an effort to garner support from left-wing lawmakers crucial for passing the 2025 budget.
Bayrou's willingness to reconsider marks the depth of political unrest in France as he begins his term by revising the hard-won 2023 pension reform amid pressure from the left, which poses a threat to his government's stability.
In a parliamentary address following a tumultuous 2024 - during which President Emmanuel Macron's early election call led to a loss of majority in parliament and financial challenges - Bayrou, a seasoned advocate for fiscal prudence, emphasized the collective responsibility of past governments for France's deteriorating public finances. He warned about the looming danger of national debt impacting future generations.
Acknowledging the heightened financial scrutiny following Macron's election move, Bayrou proposed involving trade unions and employers in a three-month initiative to seek a balanced solution on pension reform. He emphasized that raising the pension age to 64, a contentious aspect of the 2023 reform, should not be off-limits.
Bayrou aims to secure backing for his 2025 budget from opposition parties, particularly the Socialists, who demand concessions on the pension reform to offer their support. This reform, which increases the full pension age to 64 from 62, aims to save the treasury 17 billion euros ($17.44 billion) annually but faces strong opposition from the left.
The decision on voting for a no-confidence motion, maneuvered by different parties, is pivotal for Bayrou's leadership, as he navigates complex political dynamics balancing pressure from both left and right wings.
Facing delicate choices, Bayrou seeks to tread a fine line between appeasing the left without alienating centrist and conservative factions concerned about the economic implications of pension compromises.