Description: France’s Parliament has predominantly voted in favor of adopting the pension reform which stipulated that people could retire at the age of 62. The pension reform was one of the concessions that incumbent Prime Minister Sebastien Lecornu promised to the Socialist party in return for support in conceptualizing France’s mounting problems with the rising public deficit which has reached 5.8% of the country’s GDP in 2024 or 168.8 billion euros. Budget discussions have been also ongoing with the final shape of the 2026 budget with the incorporate cuts still remaining unclear. The country has been plunged into intensified political crisis with five prime ministers changing office within the span of two years while President Macron and his party are facing growing pressure from the far – left and far – right parties to step down, dissolve the government and call early elections.
Impact: The reversal of the retirement age law represents the initial step of the complete legislative and political overhaul that Lecornu would have to undertake in order to keep the current French government out of risk from being overthrown. The Socialist party still remains as one of the most significant centerpieces in the current political dynamics as their numbers in the French Parliament solely determine the fate of Lecornu’s government. The next major issue would be the adoption of the wealth tax initiative proposed by the Socialists, which has been heavily opposed by the centrists from Macron’s political camp. The budget cuts need to undertake a serious financial restructuring in order for France to reduce is public deficit, which is currently the largest in Europe, and for Macron’s presidency and government to survive. Lecornu’s successful political maneuvering is yet to be finalized as crucial steps are yet to be undertaken in order for the Prime Minister to successfully navigate the current government out of the protracted political and economic crisis. In the short – term the budget discussion will be at the center stage where the Socialists are expected to pressure Lecornu to adopt the wealth tax initiative.