18th Sep 2013 13:56
PARIS (Alliance News) - After weeks of negotiations with trade unions the Socialist government in France on Wednesday unveiled a sensitive bill aimed at reforming the cash-strapped pension system.
This is the first time a left-wing government has attempted to reform what is one of Europe's most generous pensions schemes. Previous attempts by conservative governments to trim benefits triggered mass protests and strikes that paralysed the country.
The bill approved at a cabinet meeting leaves the minimum age for a full pension untouched at 62, focusing instead on the number of years of contributions required for a worker to be eligible for a full pension.
The government proposes to increase the number of years worked from 41.5 to 43 by 2035.
The extension goes only part of the way toward plugging a huge hole in the pension scheme, which is forecast to hit 20 billion euros (27 billion dollars) by 2020, on the current course.
To make up the shortfall, employers' and workers' contributions to the pension scheme will also be increased.
Tens of thousands of workers demonstrated last week over the planned changes. Teachers have been among the most vocal opponents of the bill, saying the reforms will keep today's recruits in the classroom into their late sixties.
But the protests have been muted compared to 2010, when then-president Nicolas Sarkozy increased the minimum pension age from 60 to 62.
Over 1 million people took to the streets to oppose that reform. Weeks of strikes and protests damaged the economy.
The latest bill will be tabled in parliament on October 7.
Copyright dpa