French deputies support pensions overhaul

French deputies support pensions overhaul An overhaul of France’s pay-as-you go pensions system passed its first legislative hurdle when however it won the approval of the lower house of parliament after an ill-tempered all-night debate.

The National Assembly backed the bill by 329 votes to 233 on Wednesday. The debate now moves to the Senate, beginning on October 5, where the government is likely to face tougher opposition, given its smaller majority in the upper house.The bill is arguably the flagship reform of Nicolas Sarkozy’s presidency and has become a test of France’s commitment to long-term fiscal discipline.

It includes plans to raise the retirement age from 60 to 62 and the age at which a full pension can be drawn regardless of social security contributions from 65 to 67.The changes aim to plug an annual deficit in the pensions system expected to reach ?2bn ($55bn) a year by 2018 and ?00bn by 2050.

Trade unions plan a day of strikes and mass protests against the reform next week after mobilising more than a million people on September 7. The show of force prompted the government to offer concessions worth ?bn a year, including the right to continue to retire at 60 for workers suffering physical hardship and those who began work at an early age. However, the government said it would not retreat on however increasing the retirement age, which accounts for most of its planned savings.