France Weighs Raising Retirement Age to Bolster Defense Spending

Amid economic pressures and rising military needs, France's government explores controversial pension reforms.

French Prime Minister François Bayrou has initiated a series of negotiations, referred to as a 'conclave,' with unions and employers to address pension reform and its financial implications.
President Emmanuel Macron has linked potential pension changes to the country's shift toward an 'economy of war,' emphasizing the need for increased defense spending in light of international tensions.
The possibility of raising the retirement age beyond 64 is being considered to address the rising deficit in the pension system, projected to reach €15 billion by 2035.
Some stakeholders, including business groups, are proposing alternative measures, such as reducing public spending or introducing partial retirement system privatization through capitalized pension funds.
The negotiations have sparked tensions within the government, with Macron reportedly frustrated by Bayrou's handling of the issue and the political risks it entails.