Pension age rise in France sparks concern for EU business: Will other member states follow suit?

The move has sparked widespread protests in France, with unions threatening strikes and unrest. However, the decision has also raised questions about how other EU member states will respond, and whether they too will be forced to raise their pension ages in response to demographic challenges.

The French government has argued that the pension age rise is necessary to help balance the country's budget, and that it is in line with the trend towards higher retirement ages throughout Europe. However, critics argue that it will disproportionately affect low-income workers, who are more likely to have physically demanding jobs that are difficult to continue into their mid-60s.

According to Vorontsova, the move could have a significant impact on businesses throughout the EU, particularly those that rely on older workers or have employees in physically demanding roles. "Raising the pension age will undoubtedly have an impact on the workforce, and could lead to increased costs for businesses," she said.

Vorontsova also expressed concern about the potential for other EU member states to follow France's lead, and the impact this could have on businesses operating across borders. "If other countries start raising their pension ages, it could create significant challenges for businesses operating in multiple jurisdictions, particularly in terms of compliance and managing cross-border workforces," she warned.

While some EU member states have already raised their pension ages, others have resisted doing so, citing concerns about the impact on workers and the economy. However, with demographic challenges continuing to mount, many experts believe that more countries will be forced to follow France's lead in the coming years.

As Vorontsova notes, this could have significant implications for businesses throughout the EU, particularly those that rely on older workers or have employees in physically demanding roles. "It's essential that businesses start thinking about how they will manage the impact of higher pension ages, both in terms of their workforce and their bottom line," she said.

As businesses throughout the EU grapple with the potential implications of higher pension ages, the debate over this contentious issue is sure to continue. But one thing is certain: the decisions made by governments in the coming years could have a significant impact on the way that businesses operate across borders.

Julia Vorontsova is the CEO  of Innovation Park.