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LeMonde
26-05-2025
- Business
- LeMonde
The deficit of France's social security is unsustainable
France's social security system, which marks its 80 th anniversary this year, has never been in such an alarming state. Despite repeated warnings about the sustainability of its funding, nothing has been done about it. After a slight improvement after the Covid-19 crisis, its deficits have begun to grow once again, while measures to remedy the situation have been slow in coming. In response to the apathy shown by the government, the Court of Accounts, France's public audit institution, has changed its tone. Its report on the "implementation of the social security budget," published on Monday, May 26, speaks of a risk of a "liquidity crisis" it says could lead the system to a "default on payments." While the alarmist language is unprecedented, the dire state of the social security system's finances is not. The deficit, which was supposed to stabilize in 2024, ended up worsening by nearly €5 billion, and now exceeds €15 billion. Furthermore, it is set to deteriorate further this year, mainly due to an imbalance in the healthcare branch. The €22 billion deficit forecast for the social security budget passed in February already appears difficult to sustain. Despite a few cost-saving measures implemented in 2025, the situation is expected to continue to deteriorate, with the deficit surpassing €24 billion in 2028, if nothing is done. Until now, France has relied on temporary fixes to endlessly postpone the painful but inevitable measures needed to restore balance to its social security system's finances. The Court of Audit has now warned that this approach is reaching its limits. Starting this year, the CADES, the agency responsible for amortizing the social security system's debt, will no longer have enough resources to fulfill its role. The Central Agency for Social Security Bodies (ACOSS), which is supposed to take over from it, may face difficulties refinancing itself on short-term capital markets, the report noted. To avoid the risk of default, one solution would be to change the law and extend the lifespan of CADES. Yet this stopgap measure would only buy some time, and would not even halt the deficits, which are set to get worse. The continued widening of the social security system's deficit is unacceptable. France is experiencing neither an economic nor a health crisis. There is, therefore, no justification for tolerating such imbalances, the costs of which will be borne by future generations. There is now a risk that social benefits may no longer be guaranteed. Waiting for this threat to materialize would be utterly irresponsible. Numerous reports have outlined ways to control spending and increase revenue, but none have been implemented due to a lack of political consensus. Unfortunately, that consensus now seems more elusive than ever. With no majority in the Assemblée Nationale, the government has struggled to make progress on social security funding. It knows that it cannot afford, next fall, to pass a social security budget as unambitious as the previous one, which allowed it to avoid a no-confidence vote. The critical state of the social security system's finances demands that Parliament step up and reach compromises. Even if these measures promise to be painful for the French people, refusing to act for political reasons would expose the country to a dangerous leap into the unknown.
Morocco World
30-04-2025
- Business
- Morocco World
Morocco to Host Permanent Headquarters of Africa's Top Audit Body
Rabat – Morocco has officially become the host country for the permanent headquarters of the African Organization of Supreme Audit Institutions (AFROSAI). The agreement was signed today in Rabat by Moroccan Minister of Foreign Affairs Nasser Bourita and Zineb El Adaoui, First President of the Court of Accounts. The move is a significant step towards enhancing continental cooperation in public financial oversight. In a statement, the Moroccan Foreign Ministry said the move 'reflects Morocco's firm commitment to strengthening South-South cooperation,' in line with King Mohammed VI's vision. Moroccan Minister of Foreign Affairs Nasser Bourita and Zineb El Adaoui, First President of the Court of Accounts, signing the agreement By hosting this institution, Morocco is set to strengthen its role as a hub for African collaboration, good governance, and transparency in public finance. AFROSAI is a regional organization that brings together the Supreme Audit Institutions (SAIs) of African countries. Its mission is to promote the exchange of knowledge, capacity building, and cooperation among audit institutions across the continent. It has an important role in improving financial accountability and ensuring efficient use of public resources in African states. The permanent headquarters will be established in Morocco, with the Court of Accounts serving as the General Secretariat of AFROSAI. This reflects the recognition of the Moroccan institution's expertise and longstanding involvement in continental audit initiatives. Morocco has continuously noted the importance of institutional collaboration in strengthening the values of transparency, public financial management, and development in Africa. The new headquarters is expected to facilitate more structured and sustainable cooperation among member institutions.
Reuters
16-03-2025
- Business
- Reuters
French PM opposes calls to go back to 62 as retirement age
PARIS, March 16 (Reuters) - Prime Minister Francois Bayrou on Sunday rejected the idea of reverting to 62 as the basic retirement age in France, appearing to narrow options for unions and employers negotiating changes to an unpopular pension reform. Bayrou, who heads a fragile minority government, agreed to reopen discussion of the 2023 reform, including the contested measure to raise the retirement age from 62 to 64 years, to help secure tacit support in parliament from opposition Socialists. He tasked union and company representatives to discuss changes, saying all options were on the table provided proposals would ensure a funding deficit would be plugged. Asked in an interview on France Inter radio if it was possible to go back to retirement at 62, he said, "No." "The representatives in the social conference know very well what the numerical situation is and which I asked the Court of Accounts to set out," Bayrou said, referring to a report by France's audit office projecting future deficits even after the 2023 reform. At the same time, he did not see retirement age as the only path for reforming the pension system, he said. If unions and employers fail to agree to proposals, the government plans to proceed with implementing the 2023 reform.
