Chirac promises decisions on pensions

French president Jacques Chirac last month said the government would take decisions on pensions "before the summer", although he promised that government would "follow the route of dialogue with the social partners".

In a speech to 1,500 representatives of employers and trade unionists, he indicated that major changes were needed and, although he insisted that nothing had been finally decided, he indicated some of the main points for debate.

These include the possibility that employees should be able to work beyond age 60 and the problems posed by early retirement, which Chirac called a "waste in both economic and human terms". He did, however, state that the French system would continue to be based on contributions paid by those in work on behalf of those in retirement, and that the right to retire at 60 would be retained.

A key element in any reform of pensions in France is likely to be the position of public sector workers, who on average retire at 571/2. But change would be likely to prove difficult. State-owned energy company EDF-GDF accepted that proposals for a change to the pension arrangements, signed by three of the unions, should be voted on by pensioners and employees. In the vote they were rejected by 53.4%. Despite the vote the government still imposed them last month.