PARIS, Jan 14 - French Prime Minister Francois Bayrou is set to deliver a speech outlining a potential compromise on pension reforms in exchange for support from leftist parties for the 2025 budget. This announcement follows a challenging year for France, marked by early elections called by President Emmanuel Macron, which resulted in a loss of parliamentary majority.
Bayrou's administration, formed after the previous government collapsed, is negotiating with opposition parties, particularly the Socialists, who previously rejected budget proposals. The Socialists have linked their support to concessions on pension reforms that raised the retirement age from 62 to 64.
Details of the upcoming speech remain undisclosed, but discussions last week between Finance Minister Eric Lombard and left-wing leaders suggested some progress. However, the fragmented parliament poses a challenge, as it is uncertain whether Bayrou can secure enough support from diverse lawmakers.
Political analysts warn that compromising on pension reforms could alienate conservative and centrist lawmakers, while also potentially unsettling investors concerned about France's budget deficit. Macron has emphasized the need for increased work participation, yet his influence has waned following the electoral upheaval.