Staff
The European Commission (EC) has ordered France to revamp its pension program and cut spending to address its budget deficit.
“The pension system will still face large deficits by 2020, and new policy measures are urgently needed to remedy this situation,” it says in a statement.
The EC recommends measures such as raising both the retirement age and full pension contribution periods, as well as avoiding an increase in employer contributions.
It also gave the country until 2015 to reduce its budget deficit to below 3%, which is mandated by European Union rules. The deficit is on track to hit 3.9% this year.