experts recommend financial “balancing” measures

Expensive “balancing issues” financing of the pension system, it is necessary “find an answer”, which is not necessarily unique. This is one of the most outstanding messages that a group of experts formulates in a ” warning “ made public on Thursday, September 22. It falls a few hours after an interview granted to BFM-TV by Emmanuel Macron, in which the Head of State reaffirms the ” need “ to transform pension plans, the idea is to make ” Work more “ the assets for “Defending the French social model”.

Also read: Pension reform: Emmanuel Macron asks the Government to “find the right maneuver” with Parliament

The opinion issued this Thursday afternoon is written by the Pension Monitoring Committee (CSR), whose mission is to sound the alarm if our pension system is adrift, in relation to the objectives assigned by law: sustainability budget, equity among the insured, solidarity between generations, etc. ” If required “, this body, chaired by the economist Didier Blanchet, makes proposals to put the system on track. This is what happened in 2017, when the RSC sounded the alarm about the deficits (…) they were starting to dig again.

He then invited the government to act, reviewing the measures that could be taken, but favoring none. His recommendation was repeated for the next two years. In 2020 and 2021, on the other hand, it had refrained from issuing the slightest recommendation, due -in particular- to the context “Very Quirky” related to the health crisis. From then on, the whole question was whether the committee was going to challenge public authorities again, as at the start of Macron’s first five-year term. A question that is all the stronger since the controversy has been raging for months about the seriousness of the system’s financial difficulties.

Impact lighting

This new opinion, therefore, concludes in the affirmative: the problem must be addressed. To support its statement, the CSR relies on the latest projections that the Pensions Guidance Council (COR) presented on September 15 in its annual report. This document shows that the system returned to a surplus in 2021 (+900 million euros), but that it should fall back into the red as of 2023, and only come out of it during the second half of the 2030s, in the most optimistic scenario.

Also read: Article reserved for our subscribers Pensions: after a rebound, the system should deteriorate from 2023

In addition, the RSC points out, the ” results “ to turn off “significantly less favourable” If we refer to previous simulations, carried out in 2021: now, it would either take longer to fill the gap, or it would remain, in variable proportions depending on the pace of growth and the accounting convention used. There are significant uncertainties about the size of future imbalances, but the risk “short and medium term” It turns out to be very real, especially since it is likely that the productivity of our economy will decrease, which would accentuate the deterioration of the accounts. That is why the question of corrective measures arises.

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