Following days of discussions behind closed doors, the French National Assembly Social Affairs Committee has adopted the government’s pension reform bill, increasing the legal age of retirement from 60 to 62 and aligning public sector pension contributions with those of the private sector. French Employment Minister Eric Woerth welcomed the outcome as a complete success.

Although the bill has now successfully passed the parliamentary Social Affairs Committee without a hitch or indeed any great modification, this first test was merely a formality, and the real battle is due to commence once the text is examined in parliament. Given that the number of opponents and supporters of the government’s reform plans are in equal measure, the left are hoping to rely on support from public opinion to sway the outcome of the negotiations. Trade unions have called for a new wave of strikes and demonstrations to take place on September 7, coinciding with the beginning of the debate in the National Assembly.

The Socialist Party (PS) has, however, criticized the government, denouncing its refusal to accept any challenges to the bill. Indeed, President Nicolas Sarkozy had already made clear prior to the committee meeting that he would not be moved on the key measures contained in the bill. President Sarkozy underlined the fact that the government would stand firm on the question of raising the legal age of retirement to 62, and emphasized the need for a balance of public-private sector pension contributions, Sarkozy noted that it was “a question of justice”, and a matter that cannot be changed. While acknowledging that a discussion will take place in due course with the country’s social partners, and conceding that there might be scope for further discussion on certain points, Sarkozy nevertheless warned that further demonstrations would have no bearing on the final outcome of pension reform.

Unveiled in mid-June by Employment Minister Eric Woerth, the government’s pension reform bill aims to return the country’s pension scheme to balance by 2018. Other measures contained in the bill include plans to increase taxes on income from capital and, by way of a “pension solidarity contribution”, to increase the top rate of income tax from 40% to 41%, for taxable income in excess of EUR69,783. The 1% income tax increase will fall outside of the tax shield (bouclier fiscal), and is expected to generate in the region of EUR230m for the state.