François Hollande proposes limiting French pension indexation to 1%

Former French President François Hollande has proposed a measure to limit the indexation of pensions to 1% per year for a five-year period. In his new book, ‘Unir. Nouveau monde, nouvelle gauche’, Hollande suggests this approach as an alternative to raising the legal retirement age, arguing it could yield similar economic savings.

Economists note that while this is not a total freeze, it would result in a loss of purchasing power if inflation exceeds 1%. For instance, with a constant inflation rate of 2%, retirees would effectively lose 1% of their pension value annually. Over five years, the cumulative impact of this gap would be significant for pensioners.