One of the main policies of French President Emmanuel Macron's second term on "pension system reform" is to raise the minimum retirement age by 2 years to 64 years old to solve the fiscal deficit. .

(AFP)

[Instant News/Comprehensive Report] One of the main policies of French President Emmanuel Macron's second term on "pension system reform" is to raise the minimum retirement age by 2 years to 64 to solve the fiscal deficit. In response to opposition, France continued to launch a nationwide general strike.

As for why the French people are quite dissatisfied with this, "Bloomberg" analyzes the exact reasons.

First of all, successive French presidents, including Macron, have attempted to reform the "annuity system". Debt increases.

The state pension deficit could balloon to 0.8% of gross domestic product (GDP) over the next decade, according to the French Pensions Advisory Council.

The burden on the government has increased.

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"Bloomberg" stated that if France raises the retirement age to 64, it will reduce the pressure on public finances and allow the government to use funds more flexibly to invest and promote employment and the economy.

"Bloomberg" also said that for Macron, because he cannot run for the third president, there is no special political loss in implementing reforms.

"Bloomberg" mentioned that from the perspective of labor, raising the retirement age is unfair to the low-skilled people who left society earlier. Although the government promised to increase the pensions of low-income households, it is still not paid by the labor union; for this reason, the labor union proposes , There are other better countermeasures to solve the low employment rate of the elderly, such as raising taxes, but Macron has previously ruled out this possibility.

"Bloomberg" pointed out that according to the statistics of the World Health Organization (WHO), the world's population over the age of 60 is expected to double by 2050. To make matters worse, the fertility rate will decline for a long time. population ratio) would be out of balance.

"Bloomberg" concluded that such aggravated financial pressures have forced many highly developed countries to consider options such as raising the retirement age, cutting benefits, and raising taxes, but this will inevitably lead to fierce domestic backlash.

"Bloomberg" stated that if France raises the retirement age to 64, it will reduce the pressure on public finances and allow the government to use funds more flexibly to invest and promote employment and the economy.

(European News Agency)