• French PM Sébastien Lecornu proposes to suspend pension reform until after the 2027 election.
• The suspension aims to secure votes during critical no-confidence motions this week.
• Economic impact includes a projected cost of €400 million in 2026 and €1.8 billion in 2027.
• Opposition parties threaten to topple Lecornu's government if demands are not met.
• This reform suspension follows widespread protests and political instability since its introduction.

French Prime Minister Sébastien Lecornu announced on October 14 that he supports suspending a much-debated pension reform which raised the retirement age from 62 to 64, aiming to prevent his minority government from being toppled. Lecornu stated, “I will propose to parliament this autumn that we suspend the 2023 pension reform until the presidential election” in 2027, a move compelled by rising political tensions and pressure from opposition parties according to Le Monde, BBC, and South China Morning Post.

Lecornu’s proposal comes as France faces two no-confidence votes from the far-left France Unbowed and far-right National Rally parties. Although these parties lack a majority to oust the prime minister alone, Lecornu could be at risk if the Socialist Party aligns with them. The Socialists, crucial for the prime minister's survival, have demanded a complete suspension of the reform, putting Lecornu's cabinet in a precarious position according to TRT Global and Al Jazeera.

The financial implications of the proposed suspension are significant, with Lecornu estimating a cost of €400 million in 2026 and €1.8 billion in 2027. He emphasized that any financial impact would need to be offset by other savings, as France struggles with a budget deficit projected to exceed 5% of its GDP according to Los Angeles Times. During his speech, Lecornu assured lawmakers there would be “no increase in the retirement age from now until January 2028,” responding directly to Socialists' demands.

The pension reform has been a contentious issue since its introduction in 2023, leading to widespread protests across France. The government previously forced the reform through Parliament without a vote, a decision that sparked significant public dissent. Notably, economist Philippe Aghion has supported the suspension, arguing it would mitigate political unrest, reflecting a critical perspective on the government's previous actions, as noted in BBC and Le Monde.

Lecornu’s cabinet is tasked with navigating a pathway to a budget that addresses the significant public debt currently at approximately €3.4 trillion, which exceeds 114% of GDP. As France enacts budget discussions aimed at rectifying this troubling figure, the prime minister’s ability to maintain his position will largely depend on successfully negotiating with a polarized Parliament, particularly given Macron's previous dissolution of the National Assembly results in a hung Parliament and ongoing political paralysis according to South China Morning Post and Los Angeles Times.