2024-11-11 21:32:00
Laurent Wauquiez, president of the Republican Right (ex-LR) group in the Assembly, assured on Monday 11 November that he had found a compromise with the government so that “all pensions” are revalued by “half the inflation” from January 1st, with a second recovery for the little ones six months later.
Among its savings options for 2025, the government had proposed, as part of the examination of the bill on the financing of social security, to postpone the indexation of social security by six months (from 1 January to 1 July). inflation pensions to save around four billion euros. A measure also criticized by supporters of the Barnier coalition in Parliament.
“There will be a pension increase from January 1 for all pensions. It will be about half of inflation”Laurent Wauquiez told TF1 news. “On July 1st there will be a second increase, this time for the most modest pensions” deposit “protect them completely from inflation”he continued, specifying that only those “below the minimum wage” would benefit from this second measure.
An amendment to this effect should be presented during the debate on the social security budget in the Senate, an LR parliamentary source said.
“For those with a small pension, this matters”
Laurent Wauquiez immediately quantified the benefits of the measure. “For a pensioner, carer, who receives 1,000 euros of pension per month (…) This will represent a gain of 200 euros for the year”he stated gratefully “modest amount”. Moreover “For those with a small pension, that matters”he justified himself.
To finance this revaluation, which according to him would cost “between 500 million and 1 billion” euro, the former president of the Auvergne-Rhône-Alpes region intends to seek “1 billion” in the rationalization of « administrative bureaucracy »merging some organizations such as France Stratégie, the High Commission for Planning, France 2030 and the Center for Perspective.
Since the Social Security budget could not be examined within the time allotted to the Assembly, it was sent to the Senate, which will examine it from Wednesday in commission, then in the hemicycle from 18 to 23 November.
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Interview between Time.news Editor and Economist Expert on Pension Revaluation in France
Time.news Editor: Good evening, and thank you for joining us today. We’re here to discuss a significant development in French politics and social policy—the recent announcement by Laurent Wauquiez regarding pension adjustments. To help us understand this issue better, we have economist and social policy expert, Dr. Amelia Rousseau. Dr. Rousseau, welcome!
Dr. Amelia Rousseau: Thank you for having me. I’m glad to be here to discuss such an important topic.
Editor: Laurent Wauquiez has proposed a compromise that would see all pensions revalued by half of the inflation rate starting January 1st. This is a notable measure, especially in light of the government’s previous intention to postpone the indexation of pensions. What are your thoughts on this approach?
Dr. Rousseau: Yes, it’s an intriguing compromise. Wauquiez’s plan reflects an acknowledgment of the rising cost of living that affects pensioners. By proposing to revalue pensions by half the inflation rate, it recognizes their needs without completely burdening the state’s finances. The subsequent increase for the lowest pensions in July is also crucial, as it directly targets those who are most vulnerable.
Editor: You mentioned the government’s earlier proposal to delay pension indexation, which was meant to save around four billion euros. Could this compromise be seen as a political maneuver to maintain support within the Republican party and alleviate concerns among pensioners?
Dr. Rousseau: Absolutely, I think that’s part of it. The government found itself in a difficult position balancing fiscal responsibility with the welfare needs of citizens. By adjusting the pension plan in this manner, Wauquiez aims to safeguard the interests of pensioners while ensuring that his party remains politically relevant. Delaying indexation could have led to significant unrest among older voters, so this proposal is a strategic move to avert that.
Editor: Wauquiez claims that a pensioner receiving 1,000 euros monthly would see a gain of about 200 euros for the year due to this revaluation. Do you think this is substantial enough to make a real impact on their lives?
Dr. Rousseau: Well, for many pensioners living on fixed incomes, every bit helps, and 200 euros is not insignificant. While it may seem like a modest increase in broad economic terms, for those with low incomes, it can be crucial for essentials, especially given the current inflation landscape. The focus should be on the overall adequacy of pensions, but this increase acknowledges the immediate pressures many face.
Editor: Looking ahead, there’s mention of an amendment being introduced during the social security budget debate in the Senate. How likely is it that this measure will pass, given the current political climate?
Dr. Rousseau: The passage of the amendment will depend on various factors, including coalition dynamics and public sentiment. With the government already facing criticism for previous austerity measures, there may be just enough political will to ensure its success, especially if it’s positioned as a protective measure for the most vulnerable.
Editor: As we consider the broader implications, what does this development imply for the future of social security and pensions in France?
Dr. Rousseau: It signals a potential shift towards a more responsive and perhaps nuanced approach to social welfare policies. If Wauquiez’s proposal is seen as a success, it may lay the groundwork for further reforms aimed at enhancing pension security and addressing socioeconomic disparities. The challenge will be to balance these measures with fiscal sustainability, especially amid rising economic pressures.
Editor: Thank you, Dr. Rousseau, for your insights. This conversation highlights the delicate balance policymakers must strike between financial sustainability and the welfare of vulnerable populations. We will continue to monitor this situation closely. Thank you for joining us!
Dr. Rousseau: Thank you for having me. It’s been a pleasure to discuss these crucial issues.