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PENSION REFORM: insurmountable contradictions.

The pension reform presented September 7, 2010, by the Government before the National Assembly is twofold: firstly to make the elongation the age of retirement for a gradual shift from 60 to 62 years (gradual increase, at 4 months a year from the generation born in 1951, the legal age of retirement, which will therefore be increased for everyone at age 62 in 2018), and secondly, increasing the contribution period to qualify for a full pension (contribution period will increase to 41 years and a quarter for generations 1953 and 1954 and to 41.5 years in 2020). Meanwhile, the age of retirement, which can automatically receive a pension full rate will be gradually raised from 65 to 67 years.


This reform should help to reduce by one third to half the budget deficit of France order to move closer to compliance with the Maastricht criteria.


1) An employment rate of older low that is developing very slowly.


Before the reform of retirement, this should take place to improve the situation of older workers on the job market, the France characterized by a particularly low employment rates in the European Union.


1. The situation within the European Union.


The Stockholm European Council of 2001 has also set a long-term goal for the employment rate for people aged between 55 and 64, or 50% in 2010.


On the basis of a European study conducted in 2006 by Eurostat, we learn that "In the whole EU-25, the employment rate of older workers increased from 36.6% in 2000 to 42.5 % In 2005 (Figure 1). Between 2000 and 2005, the rate increased in all countries except Poland and Portugal. In 2005, within the EU 8 countries had an employment rate less than 50%, that is to say, according to the target set by the Lisbon Strategy. It is this situation in Sweden, Denmark, United Kingdom, Estonia, Finland, Ireland, Cyprus and Portugal. In 2005, the employment rate of older workers within the EU-25, reached 51.8% for men, when it stood at 33.7% for women. Increasing the employment rate between 2000 and 2005 has however higher for women (+6.8 percentage points) than for men (+4.9 percentage points). "


http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NK-06-015/FR/KS-NK-06-015-FR . PDF

2. The French situation.


From 2000 to 2005, the France saw its employment rate of older (55-64 years) from 30 to 38.5%. According to a breakdown by age, it is 78% for 50-54 years, 54.5% for 55-59 years, 13% for 60-64 years and 3% for 65-69%. It is 4 points lower than the average for the EU-25 which is located in an employment rate of 42.5%. In 2005, the 25 EU Member States, the France occupied the 25th place.


Admittedly, because of the barrier on the age of retirement at age 60, the employment rate drops considerably. Consequently, elongation of retirement, it is expected an improvement in the employment rate of older workers. The France has taken several measures to increase the employment rate of older people but its effects are felt very slowly. It is basically to make a change in mentality on the part of employers and job seekers who need to meet by setting a position that suits both parties. The France will not happen overnight the employment rate of older Swedish is 70%.


There is a large part of them will be laid off before age 62 years and have a low probability of finding a job, thereby increasing the number of applications in the elderly waiting to collect their retirement.


, France has put the cart before the horse, even if some of the seniors will be tempted to work as long as possible to try to get a full pension, there is also a strong desire to preserve retirement in relative fitness.


It was necessary to improve the employment rate of older workers before pushing the age of retirement which in practice will go up to 67 years.


2) A high youth unemployment.

In Q4 2009, the rate of youth unemployment was 24%, up 3.4% in one year. The difficulty of employability, extending the duration of studies, job insecurity lead to delay entry into active life around 23-25 years. It plays on the contribution period for a full pension. Even the OECD deemed to profess liberal economic approaches through Martine Durand, director of the statistical service of the OECD recognizes that states must do more to avoid the are a lost generation or sacrificed. For this generation of young people in a galley, retirement is still far ...


Martine Durand: "The crisis has generated mass unemployment"
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3) A reform that increases inequality among pensioners.

- Pension reform increases the differences in treatment between men and women against women who have careers sawtooth ( http://www.liberation.fr/politiques/0101643193-la-reforme-des-retraites-va-accroitre-les-inegalites-hommes-femmes

- According to the Observatory of Inequality, a frame receives a total amount of pension accumulated throughout his life, three times that received by a worker and the reform will increase this type of inequality . http://www.inegalites.fr/spip.php?article1238

will result is an underground linked to the proliferation of articles, the durations contribution, opportunities like that to redeem his years of study, so that retirement which is primarily a right-won with a time of well deserved rest, the reform becomes a possibility than ever submitted the laws of market economy in order to reassure financial markets and rating agencies, which threaten to degrade the note France. of worlds that ignore each other and that may well meet amid revolt and misunderstanding on the part of the weakest.