French economy minister eyes pension reforms to curb budget deficit

Roland Lescure, France’s economy minister, responded to criticism that retirees should bear the brunt of fiscal tightening by questioning why everyone else would have to tighten while pensioners are exempt. He identified two measures he deems reasonable: removing the automatic inflation link for the highest pensions and scrapping the 10% tax allowance that retirees receive on their income. Lescure clarified that the intention is not to reduce pension levels but to restrain future hikes so they stay below inflation forecasts.

He warned that without action the fiscal situation could deteriorate, and the government is targeting a deficit of around 5%. These proposals are being examined as the budget plan is prepared.