Economy Minister Roland Lescure is paving the way for a slower indexation of the highest retirement pensions as part of the 2027 budget. He believes the contribution of wealthy retirees to restoring public finances must be examined, while promising to protect those with the lowest incomes. The measure would involve increasing certain basic pensions less rapidly than inflation, contrary to the mechanism normally stipulated by law.
Basic pensions increased by approximately 15% between January 2022 and January 2026 due to high inflation. A limited increase in 2027, when price increases are expected to be around 2% in 2026, could therefore generate several billion euros in savings. The government would thus seek new revenue streams and spending cuts to bring the public deficit down to approximately 4,9% of gross domestic product in 2027.
A politically risky measure
Previous attempts to slow pension increases have triggered significant political crises. François Bayrou's proposed freeze for 2026 contributed to weakening his government, while Sébastien Lecornu's government had proposed a similar measure that would have saved nearly €3,6 billion before it was rejected by Parliament. Michel Barnier also provoked strong opposition by proposing a six-month postponement of the pension increase.
A targeted under-indexing could nevertheless receive support from part of the left. Socialist MP Jérôme Guedj does not rule out this solution, provided it is accompanied by a broader effort concerning inheritances, certain social security exemptions granted to businesses, and large artificial intelligence companies. The 2027 budget is therefore expected to be the subject of difficult parliamentary negotiations, as the government does not have sufficient political leeway to impose such a sensitive measure on its own.
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