French lawmakers suspend Macron’s pension reform amid budget tensions

French lawmakers have voted to freeze President Emmanuel Macron’s controversial pension reform, allowing the government to keep the Socialists engaged in budget talks while averting the risk of snap elections.

On November 12, the National Assembly approved an amendment to the 2026 social security budget bill suspending the 2023 pension reform, which gradually raises the minimum retirement age from 62 to 64. The measure garnered support not only from the Socialists but also from Marine Le Pen’s far-right National Rally and some centrist lawmakers who generally back the government, Caliber.Az reports via foreign media.

The vote was crucial to maintaining the pension reform suspension within the budget debate, which is set to move to the Senate later this week. Had the amendment failed, the government would have faced difficulties reintroducing the concession at a later stage.

The suspension marks a symbolic setback for Macron’s economic agenda, undermining his message that French citizens must work longer to stimulate growth and stabilise public finances. Prime Minister Sebastien Lecornu, however, is dependent on a parliament that previously toppled his two immediate predecessors over budgetary disputes.

For weeks, the Socialists had threatened to support a no-confidence vote against Lecornu if their budget demands were not met. In response, the government has made a series of concessions, including permitting tax hikes on companies. Freezing the pension reform is widely regarded as the most significant concession for Lecornu’s political survival.

The government’s control over the legislative process has been weakened further by its refusal to invoke Article 49.3 of the constitution, a measure used by previous administrations to pass legislation without a parliamentary vote. This procedural shift has allowed lawmakers to make major changes to the initial budget, including new taxes on businesses and the wealthy while scaling back spending-cut measures.

Unpredictable alliances in the National Assembly have made the outcome of votes on amendments uncertain. Some centrist lawmakers supporting the government expressed reluctance to back changes to Macron’s pension plan.

The political instability poses risks for France’s finances, as another government collapse could trigger snap elections and disrupt the country’s urgently needed budget, needed to tackle the largest deficit in the eurozone. Bond markets have already been affected, with the French-German 10-year yield spread widening — a key indicator of risk.

Macron’s grip on power has weakened significantly since last year’s failed snap election gamble, which fragmented the lower house of parliament into fractious blocs.

By Vugar Khalilov