Macron's pension reform was frozen for the sake of preserving the government. What the media is writing
- Новости
- World
- Macron's pension reform was frozen for the sake of preserving the government. What the media is writing
French Prime Minister Sebastien Lecorny, who was re-appointed to the post of Prime Minister, proposed to freeze the pension reform promoted by President Emmanuel Macron. This step allowed him to gain the support of the Socialists necessary to overcome the vote of no confidence. The French markets reacted positively to the compromise reached. What the world's media say about the suspension of the political crisis is in the Izvestia digest.
CNN: Socialists threw a lifeline to Lecorne
After an important political speech and the presentation of the draft budget, the Socialist Party said it would not participate in attempts to overthrow the government of Sebastien Lecorny, giving the 39-year-old prime minister, who had been reappointed after resigning just a few days earlier, a temporary opportunity to make concessions. In his address to parliament, Lecornu promised to suspend the pension reform proposed by French President Emmanuel Macron. It provided for an increase in the retirement age from 62 to 64 years.
CNN
Political stability is a high price, but the prevailing view was that France could not afford a repeat of the chaos that had engulfed the country over the past two weeks. Macron, who is facing unprecedented pressure and calls to resign, will also breathe a sigh of relief. Earlier in the day, the president warned party leaders that a vote of no confidence would be tantamount to holding snap elections, in which France's far-right forces are expected to show strong results.
Boris Vallaud, the leader of the Socialists in the National Assembly, did not declare his direct intention to save the Lecorny government, but noted that his party was "capable of making compromises." Privately, its representatives admit that the fear of early elections had a decisive influence on their choice, as the Socialists risked losing seats in a political plane polarized between the extreme right and the extreme left.
Politico: Macron admits mistake with pension reform
To save his new government from the short-lived fate of the previous one, Macron had to do something that no politician would ever want to do: admit that he might have been wrong. On another dramatic day in French politics, he gave tacit approval to Lecorgne, his personally appointed prime minister, to freeze the unpopular law on raising the retirement age until the presidential elections in 2027.
Politico
The Socialist Party, whose 69 deputies provide the balance of power in the French National Assembly, hinted that it would not seek the removal of Lecorn and his government from power after a statement made during the prime minister's first speech in parliament. Nevertheless, the party will continue to threaten a vote of no confidence until "words are translated into actions," Socialist leader Boris Vallaud said.
Although the reform is seen as critical to Macron's second term, Lecornu said its freeze provided France with an "opportunity" to return to the controversial issue of pensions. The Prime Minister also insisted that such a suspension must be accompanied by adequate savings to curb rampant government spending.
Financial Times: Lecornyu warned about savings
Lecorniu promised to suspend the unpopular pension reform in a last-ditch attempt to gain parliamentary support for the 2026 budget and retain his post. However, he added, the parties will have to agree on other austerity measures so that next year's budget deficit does not exceed 5% of gross domestic product.
Financial Times
The Socialist Party, on which Lecornoux's survival depends, has called on the government to freeze the controversial 2023 reform, which gradually raises the retirement age by two years to 64. According to Lecorny, the suspension of the reform will cost €400 million in 2026 and €1.8 billion in 2027.
France's budget has become the main arena of the country's political crisis, sparking fierce debate in the national Assembly. They have alarmed markets, which are already worried about huge deficits, and led to the downfall of three French governments over the past year. Lecorny presented a €30 billion financial package providing for spending cuts and tax increases, which will reduce the budget deficit to 4.7%, compared with 5.4% this year. However, the prime minister said that things could still change and the target could be softened, although he urged the parties to agree that the deficit should not exceed 5%.
Bloomberg: French stocks rise amid improving political situation
French stocks rose as investors bet that the new Lecorny government will survive the upcoming votes of no confidence. The benchmark CAC 40 index rose 2.5%, the highest since April. The growth driver was LVMH Moët Hennessy Louis Vuitton SE conglomerate, whose profits resumed growth in the third quarter.
Bloomberg
LVMH's earnings and positive political developments have given a much-needed boost to the CAC 40 index, which has lagged behind regional peers such as Germany's DAX and Spain's IBEX 35 this year. Weak demand for luxury goods from China and government turmoil have put pressure on French stocks, which in an October survey of fund managers by Bank of America Corp. They turned out to be the least preferred European market.
Investors became more optimistic after Lecorny received the decisive support of the Socialist Party in the French National Assembly, which significantly increased the chances of his new government withstanding two votes of no confidence to be held on Thursday. French government bonds also continued to rise. 10-year bonds had their best day in almost three months, and the yield premium to safer Germany fell to 79 basis points, the lowest closing in more than a month.
Переведено сервисом «Яндекс Переводчик»
