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🇫🇷 France /Economy & Trade

PS: Deputy Jérôme Guedj open to under-indexing pensions under certain conditions

From Le Figaro · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • French Socialist Party deputy Jérôme Guedj is open to a partial under-indexing of pensions, but with conditions.
  • He argues against a partial de-indexing of high pensions, calling for a shared effort to balance social security accounts.
  • Guedj proposes targeting businesses, wealthy individuals, and tech giants for contributions, alongside a shared effort from pensioners.

Jérôme Guedj, a deputy from the Socialist Party and a declared presidential candidate, has indicated openness to a "sub-indexation" of pensions, a measure considered by the government for the upcoming budget. However, the socialist lawmaker insists on other "efforts" that would target inheritances and "social loopholes."

pensioners 'should not be a taboo' for redressing the accounts of social security.

— Jérôme GuedjJustifying the need to include pensioners in the discussion about balancing social security finances.

Guedj stated in a tribune for L'Opinion that pensioners "should not be a taboo" when seeking to rectify social security accounts, which are projected to have a deficit exceeding 20 billion euros this year. He strongly opposes the idea of a "partial de-indexing of pensions above an arbitrary threshold," calling it "the worst way to approach a vital debate."

the worst way to approach a vital debate.

— Jérôme GuedjDescribing the proposed partial de-indexing of high pensions.

Each year, the finance ministry considers under-revaluing higher pensions, which are normally adjusted for inflation, to control spending. Economy Minister Roland Lescure recently acknowledged this as an "effective way to save money," while Public Accounts Minister David Amiel called for a "debate on automatic (and) undifferentiated indexations."

an effective way to save money.

— Roland LescureCommenting on the potential savings from under-revaluing higher pensions.

To "save social security," Guedj advocates for a "cocktail of measures" involving an "equitably shared effort" across various categories. This includes contributions from businesses (through exemptions from contributions and social loopholes), "wealth holders" (via CSG on capital income and taxation of "the most significant" inheritances), and "artificial intelligence giants" through a new "contribution on 'technological added value.'" Within this framework, pensioners would also contribute, not only through "de-indexation" but also via a rise in CSG so that the highest pensions are taxed at the same rate as salaries. Guedj acknowledges the "electoral risk" of his proposals but suggests that the resulting "room for maneuver" should be used not only to reduce the deficit but also to fund elder care through the social security's autonomy branch.

a debate on automatic (and) undifferentiated indexations.

— David AmielExpressing a desire to discuss automatic pension indexation methods.
DistantNews Editorial

Originally published by Le Figaro in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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