French PM Faces No-Confidence Motion After Pension Talks Collapse
French PM Faces No-Confidence Motion After Pension Talks Collapse

French PM Faces No-Confidence Motion After Pension Talks Collapse

News summary

France's government, led by Prime Minister Francois Bayrou, faces a political crisis following the collapse of pension reform talks involving trade unions and employers. The discussions failed to find consensus on key union demands such as earlier retirement for physically demanding jobs, while employers resisted increased financial contributions. This deadlock has prompted the Socialist Party to file a no-confidence motion against Bayrou's centrist government, though its success is doubtful without support from the far-right National Rally. Bayrou has called for renewed negotiations and remains open to all reform options that address the pension system's financial deficit by 2030. The impasse also casts uncertainty over upcoming debates on a proposed €40 billion budget cut planned for 2026, amid concerns about France's fiscal outlook. With unions opposing the reform and the business community more supportive, Bayrou's leadership is under significant pressure to navigate this complex political and economic challenge.

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Last Updated
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