France - stuck in a welfare death spiral:
Standard & Poor’s ratings agency downgraded France’s credit rating late Friday in an unscheduled update that cited “elevated” uncertainty on public finances after the government pledged to suspend pension reform.
I wonder why:
French retirees officially bring in more income than their working-aged counterparts, as Americans are struggling to find the funds to retire and support their post-employment lifestyle. Due to France’s relatively young retirement age, lofty governmental spending on pensions, and high wage replacement rate, they’re now out-earning citizens with jobs as the country’s officials try and make unpopular changes.
Any suggestion of change bring the mobs out on the streets:
Police in Paris have clashed with protesters after the French government decided to force through pension reforms without a vote in parliament.
Crowds converged on Place de la Concorde in response to raising the retirement age from 62 to 64.