Report
Patrick Artus

There cannot be any consensus on a pension reform

The example of France shows that there cannot be any consensus on a pension reform. Beyond the particular feature of the pension reform in France (the transition from 42 different systems to a single system will inevitably create losers and winners), a rebalancing of the pension system because of population ageing will inevitably generate conflicts: If the tax burden (social contributions) is increased, it is normally rejected by the working population (by the "young"); If the retirement age is raised or if the level of pensions is reduced, this are normally rejected by older workers and pensioners (by the "old"). Any solution will therefore generate a rejection by a large part of the population. Given the weights of the different components of the population, the majority choice would normally be that of young people, leading to a rejection of an increase in the weight of pensions.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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