French President Emmanuel Macron is being criticized for pressing on with a divisive pension reform despite a lack of parliamentary support and angry protests across the country. It’s true that he’s gambled, but he’s right to persevere. Macron’s reforms are both moderate and necessary: It’s his critics who’re letting France down.
Outsiders can only marvel at the rage aroused by Macron’s proposal. Over more than a week, hundreds of thousands of protesters have taken to the streets, widespread strikes have roiled the economy, extremists have attacked police and damaged property, flights and public transit have crept to a standstill, and some gas stations have all but gone dry thanks to refinery disruptions. Trash piled up across Paris as garbage collectors walked out.
For all that, the mooted reforms aren’t exactly revolutionary. Macron wants to gradually raise the basic retirement age from 62 to 64, which would still be low in comparison with most other countries. Although modest, that change would make a significant difference: Because the current system replaces an unusually big share of incomes in work, it costs 14% of gross domestic product, roughly double what the US spends on its own relatively generous public-pension program. Public spending in France stands at some 60% of GDP, leaving no room in the budget for such excess. The longer the needed reforms are delayed, the worse the fiscal problem will get.
