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France cuts retirement age to 60
French President Francois Hollande fulfilled a key election promise to cut the state retirement age for some workers from 62 to 60 yesterday, despite warnings that the indebted government cannot afford extra spending on benefits. The change affects those who have spent at least 41 years in labour-intensive jobs. The government believes it will cost €1.1bn (£892m) per year until 2017 and €3bn per year thereafter – €5bn below previous estimates. Critics believe that the move will be disastrous – with opposition claiming the real cost of the move could actually be as much as €6bn a year.