France

Advisory Report Suggests the French Pay Into Pensions for Longer

That ought to go down well

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Reuters)—The French should pay contributions for longer to get a full pension and well-off pensioners should pay more taxes, a much-awaited advisory report to President Francois Hollande's government said on Friday.

Pension reform, a controversial issue for decades in France, will be closely watched by its euro zone partners, which expect changes in the generous but costly system in return for giving Paris more time to bring its public finances back in line.

The study does not propose a radical overhaul of the pay-as-you go scheme but calls for measures that ask more of workers and pensioners. It also recommends a fractional increase of employers' pension contributions.