Barthélémy Philippe // Photo credit: Joël SAGET / AFP 6:24 a.m., March 8, 2024

Weighed down by an abysmal debt and tax revenues much lower than expected, the government must find at least 20 billion euros in savings for the 2025 budget, according to the Minister of Public Accounts, Thomas Cazenave.

Among the most effective budget cuts, there is the possibility of not increasing pensions in line with inflation at the start of 2025.

The revaluation of pensions has already been tested on several occasions, notably in 2014, 2016 or 2019. Vintages in which inflation was lower.

Then under-indexing offers great savings prospects, as explained by François Ecalle, former magistrate at the Court of Auditors.

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 Budget: at least 20 billion euros in savings to be found in 2025

“As of January 1, we increased basic pensions by a little more than 5% (at the level of inflation) this will have a cost of 14 billion euros over the whole of 2024. If we index on inflation minus one point, we make a saving of 3 billion euros, it's automatic", deciphers the public finance specialist.

Retirees finally put to work?

Since Emmanuel Macron came to power, retirees have generally been spared the most painful reforms.

For example, the pension reform only weighed on active workers.

There is therefore a form of logic in seeing this category of the population contribute to the restoration of public accounts.

Especially since their material situation is more comfortable than that of those who work.

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"Current retirees have a standard of living which is higher than that of working people. So, this would be a measure that is both very effective budgetarily and which I think would be fair, if of course, we accompany it with a specific gesture to destination for the most modest retirees", insists François Ecalle.

The problem is that there are European elections in three months.

Emmanuel Macron does not want to anger a category of the population that votes a lot.

And often in his favor.

To avoid an electoral rout in June, the president therefore closed the door to this measure.

And asked his ministers to no longer mention it in public.