French citizens gathered on May 1st (International Workers’ Day) to protest the new French pension law, raising the retirement age from 62 to 64. In addition to the raised age, it is now required that a citizen must work at least 43 years to be eligible to earn a full pension. Adding further tension amongst French citizens, France's President Emmanuel Macron pushed the law through by utilizing Article 49.3 in the French Constitution, which allows a bill to pass the Assemblée without a vote. To override this move, the lower levels of government would need to hold a vote of “no confidence” that the government/president is not acting in the best interest of France. The “no confidence” vote for this amendment was unsuccessful, as it generated 278 of the 287 votes needed to pass.
French pension reform echoes similar changes in other European countries, such as Spain. Spain’s new pension law increased the retirement age to 65 for people who worked 38.5 years. Spanish citizens who have worked less than 38.5 years can retire at 67.
These reforms are reactions to aging populations and low birth rates. By increasing the retirement age, the hope is that enough money can be generated into the system while younger generations become eligible to join the workforce, making future deficits more manageable.
Aging populations aren’t just a European-focused issue; the global population is steadily aging. According to the National Institute of Aging (an arm of the WHO), “In 2010, an estimated 524 million people were aged 65+, 8% of the world’s population. By 2050, this number is expected to nearly triple to about 1.5 billion, representing 16% of the world’s population.”
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