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France Alters Pension Increase Plans Amid Public Outcry

In a shift likely to reassure low-income retirees, the French government announced a pension increase of 0.9% effective January 1, 2025, accounting for half of the inflation rate. A second adjustment for pensions below the minimum wage will follow in July. Initially, the administration considered delaying this increase by six months to manage public deficit concerns. However, widespread opposition, including from within their own coalition, prompted this reversal. The change highlights growing tensions among coalition members, as they navigate fiscal policies amid rising public dissent over economic pressures on retirees.

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