France's Macron to give up presidential pension in reform gesture

[webfact]

France's Macron to give up presidential pension in reform gesture

 

France's President Emmanuel Macron speaks during the inauguration of the Agora "win win" in Koumassi, Abidjan, Ivory Coast December 21, 2019. REUTERS/Luc Gnago

 

PARIS (Reuters) - French President Emmanuel Macron, whose plans to reform the pension system have run into fierce public opposition, will forego a special presidential pension payout when he eventually steps down, his office said on Sunday.

 

Under a law dating back to 1955, France's presidents are entitled to draw a pension of about 6,000 euros ($6,650) per month before tax as soon as they leave office.

 

Macron will waive these pension rights and change the presidential scheme to bring it into line with the wider overhaul of France's retirement system, his office said, confirming an earlier report by French daily Le Parisien.

 

The 42-year-old president will be years away from France's legal retirement age of 62 when he leaves office even he serves two full five-year terms.

 

"The President of the Republic will converge ... with the universal points system planned for all French people," Macron's office said.

 

"It is a question of being exemplary and coherent."

 

Two weeks of nationwide industrial action against Macron's pension reform, which would scrap special regimes for sectors like the railways and make people work to 64 to draw a full pension, have crippled train services.

 

Speaking on Saturday during a visit to Ivory Coast, Macron called on transport unions to suspend strikes during the Christmas holidays to avoid disrupting travel for families.

 

But despite calls by some unions to suspend strikes during the festive season, several rail workers' groups are continuing stoppages as travellers head off on holiday.

 

National rail operator SNCF continued to run reduced services on Sunday, including half the usual number of its high-speed TGV trains.

 

But faced with an outcry over the cancellation of holiday services for children travelling without their parents, the SNCF laid on several trains for kids on Sunday.

 

($1 = 0.9027 euros)

 

(Reporting by Michel Rose, Gus Trompiz and Sophie Louet; Editing by Catherine Evans)

 

-- © Copyright Reuters 2019-12-23

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[Topdoc]

Pension systems everywhere are becoming less viable because, with the collapse in interest rates, there is nowhere left to invest the funds safely and earn a decent return. In June 2008 the French 10 Year Government Bond provided a yield of 4.852% and in August 2019 this yield had dropped to -0.446%. That's MINUS 0.446%. 

[PremiumLane]

Easy for him to do, he is already rich and doesn't need that money anyway. Not so easy for the ordinary working people who are screwed over by the neo-liberal obsession to syphon the money off to the rich

[Baerboxer]

3 hours ago, PremiumLane said:

Easy for him to do, he is already rich and doesn't need that money anyway. Not so easy for the ordinary working people who are screwed over by the neo-liberal obsession to syphon the money off to the rich

 

Of course. He's already rich and will be relatively young, compared to most former Presidents, when he leave office (can't see him getting a second term at the moment).

 

When he leaves he's got years more work ahead of him and a nice career in banking, public speaking and/or a lucrative job at the EU await.

 

His future his soundly assured.  

[Opl]

4 hours ago, PremiumLane said:

Easy for him to do, he is already rich and doesn't need that money anyway. Not so easy for the ordinary working people who are screwed over by the neo-liberal obsession to syphon the money off to the rich

You undoubtedly embody the thinking of certain French people who always need a scapegoat to consolidate their opinions.

[Almer]

Another joker on the loose, willing to give up his presidential pension indeed, his retirement is a long way of and he is at will free to make this gesture and it is only€6000 per month !!! , but that does  not detract the plight of every french soul who will feel the wrath of any new pension arrangements immediately.

Before my French EU compatriots think this Englishman has gone soft i would ask them to consider the plight of Uk pensioners retire at 67 not 62 and state pension being just enough to allow one to starve and or freeze to death

[BritManToo]

2 minutes ago, Almer said:

Another joker on the loose, willing to give up his presidential pension indeed, his retirement is a long way of and he is at will free to make this gesture and it is only€6000 per month !!!

His Presidential pension was due the moment he leaves the office of President.

E6,000/month at age 43 isn't a bad pension to have IMHO.

Edited December 23, 2019 by BritManToo

[PremiumLane]

1 hour ago, Opl said:

You undoubtedly embody the thinking of certain French people who always need a scapegoat to consolidate their opinions.

nah, it is called facts, you should try them sometime ????

[Opl]

1 hour ago, PremiumLane said:

nah, it is called facts, you should try them sometime ????

555... Mélenchon who personnally hardly worked till 1978 (this is a fact) criticizes Macron for daring to give up the privilèges attached to his office.

We also know that Mélenchon supported Hugo Chavez, Evo Morales, all great leaders who ruined their countries, just like the professional strikers in France actually do, it's not a problem, that's how they get elected and make a living.

Macron is not rich, he earned a lot during the short period of time he worked as a banker, that was the description of his job - period - and he choose to quit - unlike Mélenchon and others, Macron is not relying on voters to pay the rent. That's a major fact.

And above all, Macron has against him both far-left, far-right- political opponents haters of success, and all other parties who failed while in charge of the country for décades, and for this only reason, I'm supportive of Macron who inherited a true mess.

 

Edited December 23, 2019 by Opl

[billp]

Quote

Pension systems everywhere are becoming less viable because, with the collapse in interest rates, there is nowhere left to invest the funds safely and earn a decent return.

This is a common misconception. Pensions are not savings accounts. For the most part, French payroll taxes are funding current pension pay-outs. That is, those currently working are paying the pensions of those now in retirement. In France, the surplus revenues are paid into the Pensions Reserve Fund, which totals about €32bn and gets an average of 4.2% yield annually.

 

Like all sovereign wealth funds, the money is not just invested in low-interest bonds, but in publicly-traded equities (probably much of it in preferred shares which could be yielding dividends of 6-12%), high yield corporate bonds with returns north of 8%, emerging market debt, direct investments in real estate as well as real estate investment trusts and private equity. It’s not hard to find high-yield conservative investments these days. The security of the portfolio is insured by diversification and hedging, not by putting it all into “safe” low-interest sovereign debt. Even so, 28% of the French fund is in investment grade corporate bonds which currently offer a stable, average yield of 4.25%.

Edited December 23, 2019 by billp

[PremiumLane]

1 hour ago, Opl said:

555... Mélenchon who personnally hardly worked till 1978 (this is a fact) criticizes Macron for daring to give up the privilèges attached to his office.

We also know that Mélenchon supported Hugo Chavez, Evo Morales, all great leaders who ruined their countries, just like the professional strikers in France actually do, it's not a problem, that's how they get elected and make a living.

Macron is not rich, he earned a lot during the short period of time he worked as a banker, that was the description of his job - period - and he choose to quit - unlike Mélenchon and others, Macron is not relying on voters to pay the rent. That's a major fact.

And above all, Macron has against him both far-left, far-right- political opponents haters of success, and all other parties who failed while in charge of the country for décades, and for this only reason, I'm supportive of Macron who inherited a true mess.

 

Macron is just another neo-liberalist who wants to strip workers of their rights and pay them less so his banking buddies will get more money.  And who doesn't work hard? We all do, except a lot of bankers caused this mess we are in and expect the rest of us to bail them out.. 

 

You know what they did in Portugal recently? Rejected this austerity nonsense and the economy is doing well. 

Professional strikers? Do me a favour, just garbage from the press owned by billionaires. 

Edited December 23, 2019 by PremiumLane

[Opl]

29 minutes ago, PremiumLane said:

Macron is just another neo-liberalist who wants to strip workers of their rights and pay them less so his banking buddies will get more money.  And who doesn't work hard? We all do, except a lot of bankers caused this mess we are in and expect the rest of us to bail them out.. 

 

You know what they did in Portugal recently? Rejected this austerity nonsense and the economy is doing well. 

Professional strikers? Do me a favour, just garbage from the press owned by billionaires. 

facts : minimum wage Portugal 700€ , France 1521€.

So France attracts Portuguese workers, Portugal attracts foreign retirees - the Economy is doing well

Of course people who can afford to go on strike every year since 1947 for several weeks are de facto Professional strikers. and more specifically: 

Professional public service strikers 

Edited December 23, 2019 by Opl

[LazySlipper]

19 hours ago, Opl said:

You undoubtedly embody the thinking of certain French people who always need a scapegoat to consolidate their opinions.

He tells it like it is... I think you embody the thinking of certain Germans...

[JonnyF]

Macron is worth millions of dollars at the age of 42. Even if he didn't have plenty of well paid jobs lined up after this one (I suspect he will earn more millions in unelected positions at the EU after this) he'd live a life of luxury for the rest of his life.

 

He doesn't need this pension, he's using it as a tool to force through pension reform policies that will make the elderly poorer. Meanwhile, he wants to reduce corporation tax and opposes tax increases on the rich.

 

A real benevolent leader ????.

[Opl]

2 hours ago, JonnyF said:

Macron is worth millions of dollars at the age of 42. Even if he didn't have plenty of well paid jobs lined up after this one (I suspect he will earn more millions in unelected positions at the EU after this) he'd live a life of luxury for the rest of his life.

 

He doesn't need this pension, he's using it as a tool to force through pension reform policies that will make the elderly poorer. Meanwhile, he wants to reduce corporation tax and opposes tax increases on the rich.

 

A real benevolent leader ????.

In France, in 1964, public debt was less than 20% of GDP (21.6% in 1978). It reached 60% in 2000 and 96% in 2018. The baby boomers lived on credit and accumulated debts which will be reimbursed by their children and grandchildren. Millennials will have to reimburse the colossal public debt and finance the health system of which its elders are the main beneficiaries.

French Economy should do better, not thanks working less and relying more on social welfare and taking to the streets. The hatred some French people have towards success and wealth is responsible for this mess.

Edited December 24, 2019 by Opl

[Aforek]

23 hours ago, BritManToo said:

His Presidential pension was due the moment he leaves the office of President.

E6,000/month at age 43 isn't a bad pension to have IMHO.

I have read something yesterday, in French language about this : 6000 euros is only a part of his money ; with other sources of money ( not only him but other ex presidents ), all in all it makes 20000 euros when they are not president anymore : much money for people who don't work ! and he told that he doesn't want this money either