While the French government's proposed €43.8 billion in savings aim to reduce the public deficit, there are concerns about the potential impact on economic growth and social stability. The OECD projects that GDP growth will slow to 0.7% in 2026, partly due to the effects of the Middle East conflict and rising energy prices.
Raising the retirement age to 64 by 2033, as suggested by the OECD, may face public resistance and could pose challenges for social cohesion. It is important to consider the societal impact of such reforms alongside their fiscal benefits.
These economic adjustments, while aiming for fiscal sustainability, risk dampening domestic demand and increasing inequality if not carefully managed.