Politics of pension reform

Abstract

"This paper analyzes national processes of pension reform in countries with systems of old-age provision largely following the Bismarckian type (Austria, France, Germany, Italy, Sweden). Operating on a defined benefit/pay-as-you-go basis and mainly financed out of wage-based social contributions, pension systems in these countries are highly vulnerable to demographic and economic pressures. Therefore, pension reform has emerged as a major issue in these countries since the early 1990s. However, since substantial pension reform inevitably requires the imposition of tangible losses to large parts of the electorate, pension policy-makers face considerable political risks. As a closer inspection of national patterns of pension policy-making shows, the political feasibility of pension reforms and the degree of adjustment in pension policy critically depends on the government's ability to orchestrate a reform consensus either with the parliamentary opposition or with the trade unions. The paper tries to identify the conditions under which a "pension pact" between those actors is likely to emerge. It argues that among the countries under study only France lacks the preconditions for a stable political consensus over pension reform and therefore has only made very limited progress." (Author's abstract, IAB-Doku) ((en))

Cite article

Schludi, M. (2003): Politics of pension reform. The French case in a comparative perspective. In: French Politics, Vol. 1, No. 2, p. 199-224.