8 Jun 2012

France cuts pension age

9:33 pm on 8 June 2012

The new government in France has announced a cut in the pension age to 60 for some long-time workers, carrying out an election pledge in the face of economic troubles.

During his election campaign, President Francois Hollande promised a partial rollback of pension changes made by predecessor Nicolas Sarkozy, the BBC reports.

Mr Sarkozy raised the retirement age by two years to 62 in 2010, which sparked weeks of strikes in the public service sector.

Social Affairs Minister Marisol Touraine said an estimated 110,000 people would benefit in 2013, at an estimated cost of 1.1 billion euros. This figure is expected to rise to 3 billion euros per year in 2017.

However, the opposition claims the real cost will be twice that.

The change was announced without consulting parliament and is expected to take effect by way of a decree later this year.