The French government has suspended its controversial 2023 pensions reform, delaying the increase of the retirement age from 62 to 64 until January 2028.

• The delay will cost 100 million euros ($116 million) in 2026 and 1.4 billion euros ($1.6 billion) in 2027.
• To cover costs, the government plans to increase taxes on private health insurance companies and freeze pension increases, sparking criticism from unions like CFDT and CGT.
• The decision comes amidst political deadlock for President Emmanuel Macron and was a concession made by Prime Minister Sebastien Lecornu to survive a confidence vote.