the pension funds and insurance companies

Investors and show that the France is at least as well as the Germany in public finance. This is the leitmotiv of Bercy, with pensions reform, has more tangible arguments. Financial markets will accept that the retirement age is 62 years - it is the most emblematic-, but the operation of communication does not stop there.

"A fundamental point is the speed of the catch-up operated by the France on pensions: raising the age thresholds is two to four times faster in France as in Germany, the United Kingdom and the United States", said Philippe Mills, Director of the Agency France Trésor (AFT), which manages the State debt and ensures the promotion to investors. The argument will be resumed at the AFT tour intended to "sell" the French bond, as they are in competition with German titles. The "speed" of the movement is also put forward by the direct surroundings of the Minister of the economy, which stressed the "very powerful macroeconomic effects" produced by the reform, in terms of growth and employment.

An impact as early as 2013

To really fly with the investment community, Bercy must also shorten the time horizon for reference. Because the record of the pension itself is directly as a fraction of the investors: those who develop strategies for long term, i.e. the pension funds and insurance companies. The objectives of the reform are located between 2018 and 2020, while the market currently focuses on a horizon of three to four years. "In reality, the project was calibrated to produce gains as quickly as possible;" "ten years for pensions, it is little" ensures Frédérique Cerisier, at BNP Paribas. Bercy has therefore indicated yesterday that reform will already have an impact in 2013, date to which the Government is committed to reducing the budget deficit to 3 of GDP: the measures will contribute to a decrease of slightly less than 0.5 of GDP. What facilitate French commitments.

This reference to 2013 seems all the more necessary that the speech of the Prime Minister in this regard, last weekend had not satisfied the market operators. "There has no information about EUR 45 billion savings measures that will be carried out within three years, while in contrast the Germany and the Spain have provided concrete details", says Laurence Boone, at Barclays Capital.

Finally, the opinion of rating agencies remains an argument of weight. "This reform is one of the factors taken into account by the agencies, which attribute to the France the highest note of their classification, with a stable Outlook," said Philippe Mills. Fitch also welcomed late may, the Cape made by the Government to reduce deficits, even though it was already clear that the legal age for departure would be identified.

Indifferent or applied to dissect the program The markets have not reacted yesterday. The cost of the France funding increased by 1 basis point to 3.11 (rate to 10 years). The differential with German rates was 44 basis points against about 60 last week, after effective communication of the Germany on its four-year austerity plan. In the coming weeks, the promoters of the French debt will be certainly questioned the optimistic assumptions (unemployment, etc.) behind the project and necessary adjustments to preserve the balance of pensions beyond 2020.