Thu, 7 Jun 2012

France’s new socialist government is to lower the retirement age for some workers from 62 years to 60.

All workers will now receive a full pension from 65, down from 67. The government says that it will cover the estimated €1.1bn (£900m) annual cost of the change with a small rise in payroll charges made by employers and employees.

With around 28m people working in France, this would work out at a contribution of just under €40 per worker.

The hardline leftist CGT union has called the change a "striking decision that breaks with policies everywhere in Europe”.

The move has been broadly seen as political, with elections to the French National Assembly due to start this weekend, on 10 June.