French high school students’ protests have drawn attention to the structure of public education spending. In October, the government revealed that 32% of the Education Ministry’s budget is used to finance retirement pensions, according to an opinion column by nonprofit director Alexandre Lourié published in Le Monde.
Lourié argues that official figures make French education spending appear more generous than it is. Although spending is presented as exceeding 5% of gross domestic product and standing above the average for Organisation for Economic Co-operation and Development countries, he estimates that the figure is closer to 4% once additional contributions deducted from teachers’ salaries to support the pension system are excluded.
The column describes a gap between pension contributions for public-sector employees and those in the general system. Public employees are subject to a contribution rate of 93%, compared with 28% for the general regime, creating a difference of more than 20 billion euros. Those funds contribute to the Education Ministry’s reported budget of around 90 billion euros while being transferred to the pension system.
According to Lourié, the mechanism does not only finance teachers’ pensions but also helps conceal the broader deficit in the retirement system. He maintains that the arrangement makes it harder to assess how much money is actually available for schools and teachers.
The opinion piece links this hidden transfer to the frustration expressed by young people. Lourié argues that, without the funds directed toward pensions, teacher pay could have increased by more than 50% in recent years. The article presents the budgetary structure as evidence of a long-term reduction in the priority given to younger generations.
Sources: Le Monde.