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French government opts for pension under-indexation

Original: indexation

The French government has decided to apply under-indexation to pensions and to reduce the tax abatement, according to Libération. The move means pensions will rise more slowly than inflation, effectively cutting retirees' purchasing power, while the reduced abattement increases the tax burden. The decision comes amid ongoing debate over the contentious pension reform.

Why now: The government's new concession on pension indexation directly affects millions of retirees' purchasing power

French governmentLibération

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