Laurent Wauquiez, a member of the Les Républicains (LR) party and president of the parliament group Droite Républicaine, listens to the general policy speech of the French Prime Minister at the National Assembly in Paris, France on October 1, 2024. Laurent Wauquiez, who is also the president of the group Droite Républicaine in the Assembly, announced on November 11 that he had reached a compromise with the government to increase all pensions by half of the inflation rate starting from January 1, with an additional increase for those with lower pensions six months later.
The government had proposed to delay the indexing of pensions to inflation by six months in order to save approximately four billion euros as part of their cost-saving measures for 2025. This measure was criticized by supporters of the coalition Barnier in the Assembly. However, Laurent Wauquiez confirmed that there will indeed be a pension increase starting from January 1 for all pensions, with it being approximately half of the inflation rate. Additionally, there will be a second increase on July 1 specifically for the most modest pensions to protect them from inflation, with only those below the minimum wage qualifying for this additional measure.
The Prime Minister is open to the compromise, and discussions on the topic have taken place with Laurent Wauquiez. An amendment related to this issue is expected to be presented during the debates on the social security budget in the Senate. Laurent Wauquiez emphasized the importance of this pension increase for individuals with smaller pensions, stating that it can have a significant impact for someone who receives a lower pension, such as a retired nurse earning 1,000 euros per month, who may see an annual gain of 200 euros from this measure.
To finance this pension increase, which he estimates will cost between 500 million and 1 billion euros, Laurent Wauquiez plans to save 1 billion euros from streamlining administrative bureaucracy by merging certain organizations such as France Stratégie, the High Commissioner for Planning, France 2030, and the Center for Prospective Studies. Due to time constraints in the National Assembly, the social security budget has been passed on to the Senate for examination from November 18 to 23.
The social security budget is a topic of contention, with delays in voting leading to criticism from various quarters. However, efforts are being made to ensure that all pensions receive increases to keep up with inflation rates. The compromise reached between Laurent Wauquiez and the government highlights the importance of supporting individuals with smaller pensions and providing them with financial relief through these measures. The upcoming debates in the Senate will be crucial in solidifying these changes and ensuring that pensioners are adequately supported in the face of economic challenges.
