2024-11-12 09:26:00
The government and the right have found a compromise to revalue all pensions by half inflation on January 1, 2025, then smaller pensions in July. The announcement, made on Monday evening by Laurent Wauquiez, president of the right-wing republican group (formerly Les Républicains), was confirmed on Tuesday 12 November by the Budget Minister, Laurent Saint-Martin. The measure will cost up to 800 million euros.
“On January 1st all pensions will probably increase by 0.9%, which is half the rate of inflation – we will see exactly what the inflation estimate will be. (…) And on 1 July 2025 all pensions that are below the minimum wage level will be recovered, so that there is no loss of purchasing power.”Mr. Saint-Martin said on France 2.
“Depending on the reality of inflation, this can vary and in reality we will be returned between 500 and 800 million euros to small pensions”reducing the desired savings to 3 billion, he said.
Among the savings options for 2025, the government first proposed postponing the indexation of pensions to inflation for six months (from 1 January to 1 July) to save around four billion euros. A measure also criticized by supporters of the coalition in the Assembly.
“Consultation method”
Laurent Wauquiez assured the TF1 news on Monday that he had found a compromise with the government on the matter.
Laurent Saint-Martin assured that he knew that this announcement would be made by Mr. Wauquiez. “The Prime Minister has said from the beginning of this government that we wanted a method of consultation with this coalition which is the majority base of the National Assembly and the Senate, and that there could be changes to the text”he said. « We must also further demonstrate that the evolution of this text arises from compromises between the government and the majority parliamentarians”he added.
“The Prime Minister is open to compromise. They have discussed this topic with Laurent Wauquiez and he will soon have the opportunity to provide details.”the head of government’s entourage told Agence France-Presse. 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 quantified the expected benefits of the measure on TF1. “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.
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To finance this revaluation, 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.
Interview between Time.news Editor and Laurent Wauquiez, President of La Droite Républicaine
Editor: Good day, Mr. Wauquiez. Thank you for being here today to discuss the recent pension changes announced by your party in collaboration with the government. This has undoubtedly been a significant step towards addressing the concerns of many pensioners across France.
Wauquiez: Thank you for having me. It’s an important topic, and I believe we’ve made a meaningful compromise that can make a difference for those who need it most.
Editor: The announcement indicated that pensions would be revalued by half the inflation rate starting January 1, 2025. Could you clarify what this means for pensioners facing rising living costs?
Wauquiez: Absolutely. The plan is to increase all pensions by approximately 0.9% initially, which is half of the expected inflation. We understand that for many pensioners, especially those living on smaller pensions, any increase, no matter how modest, is crucial. In fact, we estimate that those receiving about 1,000 euros a month could benefit by an additional 200 euros over the year. For someone on a tight budget, this can make a significant difference.
Editor: It’s clear that you’ve considered the impact on those with smaller pensions. However, there was initial criticism regarding the proposed postponement of pension indexation. How did you navigate these differing views within the Assembly?
Wauquiez: Indeed, there was concern about postponing the indexation to save costs. However, it became evident that a fair compromise needed to be reached. The discussions with the government emphasized collaboration, and the solution we arrived at reflects a balance between fiscal responsibility and the social imperative of addressing our citizens’ needs.
Editor: This effort to work closely with the government reflects a shift in approach. How do you think this cooperation will influence the future of the right in French politics?
Wauquiez: Cooperation is essential as it demonstrates that we are listening to both our constituents and the broader needs of the country. Our goal is to be seen as a party that not only represents right-wing values but also actively engages in constructive dialogue to create beneficial policies. This alignment with the government can help strengthen our position and influence future legislation.
Editor: You mentioned the importance of proper consultation methods going forward. How do you envision this playing out in other policy areas?
Wauquiez: Moving forward, it’s vital that we set a precedent for consultation across all policy areas. We have to ensure that our legislators are involved in the process and that their voices reflect their constituents’ needs. This approach can help us navigate controversial decisions, ultimately leading to better governance and trust from the public.
Editor: With an expected cost of up to 800 million euros, how do you justify this financial commitment in light of the ongoing discussions about public finances?
Wauquiez: Financial commitments are always a delicate balancing act. We believe that investing in our pensioners is essential for social stability and cohesion. The government’s approach has also looked at reducing overall savings targets, which gives us the flexibility to allocate resources where they are most needed. Long-term savings can’t come at the expense of our citizens’ well-being.
Editor: what message would you like to convey to the pensioners who are eagerly awaiting these changes?
Wauquiez: My message to them is simple: we hear you, and we are committed to supporting you. The changes we propose are a result of listening to your concerns and realizing the challenges you face. This increment, while it may appear small to some, is a step toward ensuring that your purchasing power is maintained and that you can live with dignity.
Editor: Thank you for your insights today, Mr. Wauquiez. It’s clear that this issue is vital not just for the current parliament but also for the fabric of French society as a whole.
Wauquiez: Thank you for having me and for bringing attention to such a crucial topic.