French Prime Minister Francois Bayrou on Tuesday indicated a willingness to revisit a contentious pension reform in an effort to gain the support of left-wing lawmakers crucial for passing the 2025 budget.

This move highlighted the depth of France's political unrest, as Bayrou faced the challenge of reworking the 2023 pension reform, a hard-fought achievement, during his initial weeks in office.

The pressure from the left, which has threatened to bring down his government, has added urgency to his concessions.

Bayrou announced the intention during a parliamentary speech following a turbulent 2024, a year marked by President Emmanuel Macron’s unexpected decision to call early elections. The move backfired, costing Macron his working majority in parliament just as the country’s public finances began to falter.

A staunch advocate for fiscal discipline, Bayrou attributed France’s deteriorating financial situation to the actions of numerous past administrations. However, he cautioned that the nation's escalating debt represented a “sword of Damocles” threatening the well-being of future generations, Reuters reports.

“Anyone asking for additional spending has taken part in this fatal tango that has taken us to the edge of the precipice,” the PM told the National Assembly.

France faces mounting pressure from ratings agencies and financial investors, who have demanded higher risk premiums for holding French debt since President Macron’s decision to call snap elections.

Raising the pension age, a measure widely regarded by economists as critical for aligning public finances with the demands of an aging population, has been the centrepiece of Macron's economic reforms during his second term, and was pushed through despite widespread street protests.

In a keynote policy speech outlining his governing principles, Bayrou addressed lawmakers and proposed assigning trade unions and employers' groups a three-month mandate to negotiate a new agreement on pension reform.

He said that the minimum retirement age of 64 for receiving a full pension, the most contentious aspect of the 2023 reform, should not be treated as a taboo.

The new “conclave” tasked with exploring a revised pension agreement will need to propose a solution that is financially sustainable. If such a balanced deal cannot be reached, Bayrou stated, the existing arrangement will remain in effect.