Description: The newly reappointed Prime Minister, Sebastien Lecornu, while addressing the ministers of parliament in France’s National Assembly, vowed to support cutting down Macron’s pension reform which increased retirement age from 62 to 64 in a bid to appease the Socialist party. President Macron brought the reform into law using the special 49.3 article which allowed the government to pass a bill without a vote in the National Assembly in 2023 which drew sharp criticism from the left parties and resulted in massive civil unrest. Lecornu also mentioned that the projected budget cuts and savings expected from the pension reform stood at $463 million in 2026 and $2.1 billion in 2027, funds which would have to be compensated through other means of budget cuts in order to decrease the country’s mounting debt crisis. Lecornu’s budget plan which was disclosed shortly after he held discussions with his new government cabinet foresaw cuts in the civil servant and pension sectors, tax on wealth management holdings and levies on imports of small parcels from non – European countries. The Prime Minister’s budget is expected to save approximately $34 billion instead of the previously proposed $51 billion by former Prime Minister Francois Bayrou. No confidence votes were submitted by the France Unbowed and the National Rally parties on Monday, while other parties such as the Communist party and the Greens also suggested they would support the initiative for the disassembling of the Parliament and snap elections.
Impact: Lecornu has expectedly pleaded to the Socialist party for support by throwing his support behind suspending the pension reform in order to avoid another collapse of the caretaker government. The immediate response from the Socialist party was moderate as the leadership continued to demand reassurances in Lecornu’s reforms regarding the pension initiative. The pressure from the political opposition continues to rise with the France Unbowed and the National Rally garnering support to introduce another no confidence vote expected to be held on 16 Oct. The standoff between Lecornu and the Socialist party would determine the success of the no confidence vote which currently favors the political opposition. A lot would depend on the guarantees that Lecornu most certainly offers to the Socialist party away from the public in terms of other concessions and a timeframe of implementing the suspension of the pension reform. The political crisis enters a crucial period which would determine whether the current government would survive or plunge France into an early election period and revolving inter partisan divisions which would ultimately result in nationwide unrest and governmental deadlocks that range from politics, economy, security and social stability.