A planned French pension reform will increase worker and company contributions in equal proportions from 2014 and gradually lengthen the period for paying in, according to a proposal on Tuesday, reports Euronews.
However, the reform will stop short of trimming annual increases that adjust pensions for inflation and avoid some other money-saving measures proposed by a panel of experts earlier this year.
Prime Minister Jean-Marc Ayrault, who agreed the final proposal in two days of talks with trade unions and employers, said the reform would aim to share out the burden of paying for the increase in life expectancy.
“The reform that I’m proposing aims to fix the accounts in a lasting way while also removing sources of injustice,” he said.
The reform will be the most closely watched of Hollande’s 15 months in power and risks coming under fire from foreign investors and analysts for not being bold enough to restrain the growth of France’s public deficit.
Read more of this Reuters report published by Euronews.