France proposes freezing pension indexation until 2030 to curb public debt

A French expert committee on pensions has renewed its recommendation to under‑index retirees’ pensions, effectively freezing annual adjustments for up to three years and possibly until 2030. The proposal would lower the inflation‑linked increase by two points – for example, a 3 % inflation rate would translate into only a 1 % pension rise – saving several billion euros.

An IFOP poll released in April found that 52 % of retirees, including 53 % of those over 65, would accept a reduction in pension amounts to help reduce the national debt. Unions, however, warn that cutting pension buying power could dampen consumption and tax revenue. A separate analysis highlights the demographic challenge facing France’s pension system: the ratio of contributors to retirees is projected to fall from 1.8 in 2025 to 1.3 by 2070, with pension spending already reaching 14.1 % of GDP. Experts argue that beyond short‑term indexation changes, a comprehensive reform—potentially mixing pay‑as‑you‑go and capitalisation elements—is needed to ensure long‑term sustainability.