French Unions Plan Pension Protest

January 12, 2011 by · Leave a Comment
Filed under: Financial Crisis, The Rating Agencies 

To avoid the credit problems that have plagued Greece, Portugal, Italy and others in the European Union, France is taking steps to scale back its generous pension program.

The credit rating agency Moody’s recently noted that pension reform is critical to France trimming the public deficit so it falls within the 3%-of-GDP limit specified by euro zone treaties. To maintain its good credit ratings, the country needs to demonstrate that it can implement fundamental reforms to help reduce its public deficit.

Proposals that will go before France’s parliament in September include raising the minimum retirement age from 60 to 62 and increasing the age at which workers can retire with full benefits from 65 to 67.

French unions do not like the proposals and are taking steps to cause legislators to support their position. Seven unions are calling on members to stage a “day of massive strikes and demonstrations” on September 7th, the day Parliament will begin to discuss proposals. Unions claim that employees will unfairly bear the cost of pension reform.

Speak Your Mind

Tell us what you're thinking...