French President Francois Hollande may face resistance in pension reforms
French President Francois Hollande may manage a lightweight reform regarding the country's indebted pension system. This is the current outlook, with trade unions in the streets protesting and with Hollande's own Socialist Party saying that they have plans to oppose proposed programs. Many Europeans are saying that France may damage its current standing if it fails to address the growing deficit in the country's pension funding. Hollande faces resistance on his more modest plan to extend the 41.5-year contribution payment period, which is required to get the full pension.
"It will be an intermediate reform: one that is just enough to appease markets but not brutal enough to upset things at home," said economist Henri Sterdyniak of France's OFCE economic observatory.
With the risks of protest and strikes hitting France, Hollande's three-seat parliamentary majority is further threatened by revolts from back-benchers. The pension fund has been depleted due to the rising unemployment and lack of reform.