Protests in France that began with students demanding better educational conditions spread nationwide almost overnight, and analysts attribute the momentum to young people's anger over delayed pension reform. As economic growth slows while pension spending stays heavy, companies have cut back on hiring young workers and the government has been unable to expand education funding.
The National Union of Students of France (UNEF), a leading student group, and the Yellow Vests, which led anti-government protests in 2018, announced a second large-scale joint demonstration for the 24th and urged people to attend, Reuters reported on the 21st. Major labor unions have gone further, deciding on a general strike for Nov. 5.
Behind the sustained public anger lies the pension system. France operates a pay-as-you-go (PAYG) system, in which contributions from the current working generation fund pensions for the elderly. South Korea's National Pension Service also uses a PAYG structure, but it is supported by a fund of 1,000 trillion won. France has no such fund, leaving the burden on state finances. Companies, facing higher pension contributions when they hire permanent employees, are also reluctant to take on young workers.
The problem is that France's fiscal deficit already exceeds 5% of gross domestic product and national debt is approaching about 120% of GDP. At the same time, people aged 65 and over account for roughly 22% of the population, putting France in super-aged society territory.
The French government introduced a pension overhaul in 2023 that raised the statutory retirement age to 64 from 62. But amid continuing conflict over the measure, the cabinet of Sebastien Lecornu, which failed to secure a parliamentary majority, ultimately deferred the increase until 2028 in December last year. Marine Le Pen, a National Rally (RN) lawmaker seen as the front-runner in next year's presidential election, backs returning the retirement age to 62. France's retirement age is lower than those in Britain and Spain, at 66, and the Netherlands, at 67.
Since last year, a meme has circulated on social media in France: "C'est Nicolas qui paie," or "Nicolas is the one paying." Le Monde described Nicolas as a symbol of the "city-educated man in his 30s" who dutifully pays taxes and social insurance contributions yet is sacrificed to foreigners and the retired generation. Paul Krugman, the U.S. economist, said fiscal pressure from France's excessively generous pension system has led to cuts in education.