French PM proposes suspending controversial pension age law until 2027 election

French Prime Minister Sebastien Lecornu delivers his policy speech at the National Assembly in Paris (Thibault Camus/AP)

French Prime minister Sebastien Lecornu has proposed the suspension of a contested plan raising the retirement age from 62 to 64, in a move to avoid his fragile minority government being immediately toppled.

Mr Lecornu said on Tuesday in a speech at the National Assembly that the law, a flagship policy of French President Emmanuel Macron, would be put on pause until after the next presidential election, to be held in 2027.

The Socialist Party, which is not part of the government, had demanded the law be repealed.

Mr Lecornu faces two no-confidence motions by the hard-left France Unbowed and far-right National Rally parties. The two parties do not hold enough seats to topple Mr Lecornu’s government on their own, but the prime minister could quickly be undone if the Socialist Party joins forces with them.

Marine Le Pen listens to Mr Lecornu’s policy speech on Tuesday (Thibault Camus/AP)

Mr Lecornu earlier met his Cabinet to discuss proposals for the 2026 budget, which needs to be approved by the end of the year.

With his government hanging by a thread, France’s newly reappointed prime minister must make concessions to his political opponents to avoid the no-confidence vote later this week, as the country struggles to end a lingering political crisis.

The opposite sides of the political spectrum have criticised Mr Macron’s decision to reappoint Mr Lecornu, France’s former defence minister and fourth prime minister in barely a year.

With less than two years before the next presidential election, National Rally is urging Mr Macron to call another early parliamentary vote while France Unbowed wants Mr Macron to step down.

French President Emmanuel Macron’s successive minority governments have collapsed in quick succession (Michel Euler/AP)

The Socialist Party gained a high-profile ally in the retirement age debate. Nobel Prize-winning economist Philippe Aghion told broadcaster France 2 that it should be suspended until the next presidential election to be held in 2027.

“I think we need to stop the clock now until the presidential election,” Mr Aghion said, arguing that doing so would be “the way to calm things down” and “it doesn’t cost very much to pause it”.

Mr Lecornu’s re-appointment is widely seen as Mr Macron’s last chance to reinvigorate his second term. His centrist camp lacks a majority in the National Assembly and he is facing increasing criticism even within its ranks.

Mr Macron’s surprise decision last year to dissolve the National Assembly resulted in a hung parliament and political paralysis.

Over the past year, Mr Macron’s successive minority governments have collapsed in quick succession, leaving France mired in deadlock while confronting a rising poverty rate and a mounting debt crisis that has alarmed markets and EU partners.