mightymikerichards.com

The French government yesterday announced a reform of the pension system by raising the retirement age to 62 years. AFP launched, increasing the retirement age is the middle way to reduce the budget deficit and avoid a clash with unions.

“Rescue our pension system is a very important action,” said Secretary of Labor during the conference Wrth Eric Frenchman pressed to explain the reform of the pension system reported by AFP on Thursday (17/06/2010).

He announced to increase the retirement age from 60 years to 62 years in 2018. Reform of the pension system is the agenda of French President Nicolas Sarkozy to win the 2012 election. French unions reject these reforms and threatening to strike and demonstrations until the reform was canceled. Working longer is inevitable. “There is no better solution,” added Wœrth.

Discussion about increasing the retirement age has become a taboo subject matter discussed in France. Therefore, France has confirmed the retirement age in 1982. At that time, led by French President Francois Mitterrand of the Socialist party. The French government also intends to extend the period of pension payments from 40.5 years to 41 years. Next, the new taxes imposed on earnings and returns on pension funds. New pension rules would eliminate the budget deficit in 2018. These reforms could provide additional revenues amounting to 3.7 billion euros ($ 4, 6 billion).

“All partners (countries), we in Europe have been doing this. We can not possibly leave this movement (reform),” said Wœrth.

He has menfinalisasi draft pension reform by President Sarkozy on Tuesday night. Reform of the pension system will be aged for Sarkozy’s Cabinet next month. The plan, Sarkozy will seek approval of Parliament France in September. But this new policy plan could fail in Parleman France. Unions threatened to strike and street protests. This threat may force the parties supporting the Government to abandon plans to Sarkozy’s pension reforms.

Last Tuesday, tens of thousands of people demonstrated in Paris. They are willing to take to the streets of Force Ouvriere calls Workers Union who rejected the pension system reform plan. Six other unions mengacam will perform the national demonstration on 24 June. Until now, Sarkozy’s government has not shown concern over the threat of social unrest. Therefore, some traces of the opinion concludes that French people want the proposed pension system reform agenda.

Like other European countries, France faces a shortage of funds to pay pensions as the population in the country his parents  Mode. Therefore, the fewer people working to pay pension premiums. This year, the pension deficit disistem approaching 11 billion euros ($ 15 billion). Prime Minister (PM), Frenchman Francois Fillon said the shortage of pension funds will reach 100 billion euros in 2050. French unions and opposition from the socialist states, Pemerinth France must find new sources of financing to fund the pension fund. They propose an increase in taxes for the rich and businessmen.

Currently, the retirement age in France, most young workers compared to other countries in Europe. Announcement of the pension system reform was only one day out of the budget statement decline by 45 billion euros in three years. This is the French policy of austerity following the agreement made by all countries in Europe.

In the footsteps of opinion, the potential approval of pension reforms by President Sarkozy French Parleman very thin. Because, from the socialist opposition has led to the upcoming French presidential candidate who is more credible in answering the challenges of the future.