France’s ageing population is set to push public spending to pandemic-era levels in the coming decades, the Cour des Comptes warned on Tuesday. By 2070, nearly one in three French citizens will be over 65, while the working-age population is projected to shrink by more than 3 million.
Healthcare, pensions, and old-age benefits already consume over 40% of public spending, and if current per-person benefits continue, total spending could exceed 60% of GDP by mid-century — a level previously only reached during the COVID-19 pandemic, News.Az reports, citing Reuters.
The report highlights a “scissor effect,” where fewer workers contribute to taxes while retirees require more resources, challenging the sustainability of France’s pay-as-you-go pension system. Immigration and higher employment among seniors, women, and youth could only partially offset the gap, auditors said.
The Cour des Comptes urged policymakers to address the demographic challenge promptly, warning that delays will make reforms more painful, especially after the suspension of a 2023 pension reform that aimed to raise the retirement age from 62 to 64.