French Pension Reform 2023

10 Questions

What is the expected inflation rate for the euro zone this year?

5.3%

Which sector drove the profits of CAC 40 companies in 2022?

Luxury and energy

Which French company was the most profitable for the 2022 financial year?

TotalEnergies

What was the result of Emmanuel Macron's pension reform?

The legal retirement age will shift to 64 in 2030 and the contribution period will be extended

What is the minimum contributory for a full career under the pension reform?

85% of the minimum wage

What type of pension system is the French government seeking to create?

Universal points-based system

What constitutional provision was used to pass the pension reform?

Article 49.3

What is the objective of the French government regarding the implementation of the pension reform?

To implement the main measures by September 1, 2023

What action did the left take regarding the pension reform?

Submitted a shared initiative referendum to challenge the reform's admissibility

What is the current status of the pension reform?

It has been passed and confirmed by the Senate, but faces opposition from trade unions and the public

Study Notes

The ECB reports that recession risks are fading for 2023 and inflation is expected to fall to 5.3% this year in the euro zone.
GDP growth in the euro zone has been revised upwards by 0.5 points and should reach 1% due to lower energy prices.
The ECB calls on states to rapidly reduce their budgetary support for purchasing power and lead a debate on an adequate sharing of the burden of inflation.
Consumer prices are only expected to rise by 5.3% this year, whereas last December economists in Frankfurt were still expecting inflation to exceed 6%.
CAC 40 companies made €142 billion in profit in 2022, driven by the luxury and energy sectors.
TotalEnergies is the most profitable French company for the 2022 financial year, posting €19.5 billion in gains.
LVMH presents €14 billion in net income, posting a 17% growth in its profits compared to 2021.
CAC 40 companies have not reduced their dividends despite inflation affecting part of their employees.
Emmanuel Macron's pension reform was adopted on March 20, 2023, shifting the legal retirement age to 64 in 2030 and accelerating the extension of the contribution period.
The reform plans to increase the minimum contributory for a full career to 85% of the minimum wage (i.e. €1,200 gross per month) from September.
The French government has passed a controversial pension reform bill.
The reform seeks to streamline the current pension system and create a universal points-based system.
The reform has faced significant opposition from trade unions and the public.
The reform was passed using Article 49.3 of the Constitution, which allows adoption without a vote.
The Senate confirmed its positive vote on the reform on March 16.
The reform reduces the financial gains of the current system and takes up most of the demands of the senatorial majority.
The left has submitted a shared initiative referendum to challenge the reform's admissibility.
The executive's objective is to implement the main measures by September 1, 2023.
The government has referred the reform to the Constitutional Council for examination.
The reform's journey has been chaotic and highly contested.