Paris, Feb 27 (Reuters) - Prime Minister Francois Bayrou emphasized the importance of French unions and employers finding common ground in pension negotiations to restore the retirement system's financial stability by the end of the decade.
Discussions kicked off on Thursday to revise the controversial 2023 pension reform, which gradually raises the retirement age to 64. Bayrou, in a letter to participants, stressed the need to achieve financial balance in the retirement system promptly alongside offering tangible benefits to citizens by aiming for a target year of 2030.
An independent audit office warned against abandoning the 2023 reform, which was forecasted to incur a cost of €13 billion ($13.6 billion). Without further action, a €15 billion deficit between pension contributions and payouts is expected by 2035 even with the 2023 reform in place.
Unions are pushing to revoke the retirement age increase, while employers' federations are adamant about avoiding additional payroll contributions, which would elevate labor costs. Bayrou, known for his fiscal conservatism, highlighted that negotiations should explore all options, including the retirement age, without worsening the pension system's financial position.
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