France Plans Pension Tax Reform, Faces Retiree Backlash

The French government is considering abolishing a longstanding 10% tax reduction for pensioners in its effort to address mounting national debt and secure €40 billion in savings by 2026. Introduced in 1978, this tax break currently benefits millions of retirees, but officials argue it is outdated and unfairly advantages retirees compared to the working population. Key government and business figures, including members of the Pensions Advisory Council and Medef, support the change, describing the allowance as 'illogical' and a significant fiscal drain. However, pensioner unions and critics warn that removing the relief could increase the tax burden for about 8.4 million retirees, many of whom are already financially vulnerable, and would contradict previous government assurances against new tax hikes. The proposal has sparked a heated national debate about fiscal responsibility versus social fairness, as the government seeks to balance deficit reduction with protecting retirees' welfare. The outcome of this contentious reform remains uncertain as consultations continue.