A reform that is “positive for public finances” but that “could hinder future reform efforts.” In a note on France published a few days ago, Moody’s acknowledges that “approving the ‘pension reform’ invoking article 49.3 of the Constitution, thus avoiding a vote in the National Assembly, will probably make it more difficult to adopt new reforms during this legislature.” .
“The government’s decision to use this constitutional tool risks complicating future efforts to legislate and implement structural macroeconomic reforms for the remainder of Macron’s term, which ends in 2027,” the ratings agency said.
However, Moody’s analysts believe that while the executive’s plan is “slightly less ambitious than what was initially envisioned by President Emmanuel Macron during the presidential campaign, it should help support deficit reduction this decade and “increase the participation in the labor market of older workers”.
Source: BFM TV
