Pension Reform
Deputies vote again to suspend pension reform
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On Friday, December 5, 2025, the National Assembly adopted in second reading the suspension of Élisabeth Borne's pension reform, by 162 votes for against 75. This measure, a government concession to the Socialist Party, had been reinstated by the Senate the previous week. The vote paves the way for a potential adoption of the 2026 Social Security budget, but uncertainties remain for the solemn vote on Tuesday, December 9.
Prosperidad Social is urging elderly beneficiaries of the Colombia Mayor program to claim their 230,000-peso pension bonus before the January 12 deadline. New recipients started receiving the transfer from December 23 as part of the government's social protection strategy.
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The Superintendencia de Pensiones has published Normativa NCG N° 354, regulating the establishment and launch of new Administradoras de Fondos de Pensiones (AFPs), aligned with the 2025 pension reform. The norm raises the minimum capital requirement to UF 50,000 and sets experience standards for directors and investment executives, also applying to existing AFPs from April 2027.
Thorsten Frei, CDU chancellery chief, has defended the controversial federal government's pension package, deeming it approvable. He points to a planned pension commission that will develop proposals for long-term reform by summer 2026. Despite criticism from his own party, he shows understanding for concerns from young Union parliamentarians.
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Saxony's Minister President Michael Kretschmer has sided with young Union politicians in the pension dispute. He describes the current pension policy as exacerbating the problem and attributes responsibility to the CSU and SPD. The Young Union threatens to block the pension package.
Standard & Poor's rating agency downgraded France's sovereign rating from AA- to A+ on Friday evening, citing persistent uncertainty over public finances despite the 2026 budget proposal. This anticipated decision, the third in a year, is largely attributed to the suspension of pension reform. Economy Minister Roland Lescure sees it as a call for lucidity and collective responsibility.
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Sébastien Lecornu's government survived two no-confidence motions in the National Assembly on Thursday, backed by the Socialist Party in exchange for suspending pension reform. The La France Insoumise motion failed by 18 votes, with 271 in favor against 289 needed. The National Rally motion garnered only 144 votes.
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