France’s Macron Confronts Divided Parliament With Plan to Raise Retirement Age

“I want us to restore together the meaning and virtue of the word ‘compromise,’ which has been forgotten for too long in our political life,” she said.

Ms. Borne then pivoted to the government’s legislative priorities, signaling she was determined to move forward with Mr. Macron’s plan to raise the retirement age from 62 to 65 despite opposition from left-wing opposition lawmakers and unions. Mr. Macron’s previous push to overhaul the system triggered in December 2019 the longest transport strike in France’s history, and the plan was later shelved by the government as it focused on the Covid-19 pandemic.

“We will have to work progressively longer. Our country needs a reform of its pension system,” she said. “There is no packaged project, no project already set in stone, but it is indispensable,” she added.

Ms. Borne’s speech came weeks after Mr. Macron’s party and its allies lost their majority in parliament, in a major blow to the French leader and his pro-business agenda. Mr. Macron was re-elected to the presidency in April by a double-digit margin, and candidates from the party of a newly elected president usually ride his coattails to office. But five years of pro-business policies under Mr. Macron, including loosening labor protections and cuts to employment benefits, have alienated many voters, particularly on the left.

Rising energy and food prices, partly fueled by the war in Ukraine, have also taken a political toll on Mr. Macron, who has often faced criticism that he is out of touch with the everyday hardships of working-class and middle-class French.

The coalition led by far-left leader

Jean-Luc Mélenchon

said it would seek a no-confidence vote to mark its opposition to the government. The move, however, has little chance of passing, because the far-right National Rally and conservative party Les Républicains said they wouldn’t back it.

Mr. Macron’s party won the most seats in parliamentary elections in June but fell short of the 289 needed to form a majority in the 577-seat National Assembly. Mr. Macron’s party, Renaissance, and its allies garnered 245 seats. The coalition led by Mr. Mélenchon—whose party forged an alliance with French socialists, communists and greens—won 131 seats.

Marine Le Pen’s

National Rally got 89, while Les Républicains and its allies won 61 seats.

Without a clear majority, Mr. Macron’s government will be forced to negotiate with other lawmakers to push individual bills through parliament.

The first bill on the government’s agenda is a packet of emergency measures to shield French households from inflationary forces that have been compounded by Russia’s invasion of Ukraine and the ensuing energy crisis.

The government wants to increase civil servants’ salaries, index pensions to inflation and allow companies to pay tax-free bonuses of up to €6,000, equivalent to $6,313, to employees. It also plans to offer checks to low-income households to buy food and help pay the fuel bills of people who need to drive to work, and increase social benefits. The government will also extend a cap on electricity and gas prices, and limit any rent increases to 3.5%.

Ms. Borne also said the government plans to start reducing France’s deficit in 2026, and bring it below 3% of France’s gross domestic product in 2027, without raising taxes.

The government will also work on a new bill to tackle climate change, Ms. Borne said. The government will invest in nuclear and renewable energy, develop clean transport and renovate buildings.

“The climate emergency requires strong, radical decisions,” Ms. Borne.

The speech was met with skepticism by opposition leaders.

Olivier Marleix,

party whip for Les Républicains, said he disagreed with many of the government’s policies, notably on immigration, security and energy transition, but didn’t want to paralyze the National Assembly.

“We will do everything to make sure the next five years are more useful to our nation than the last 10 ones,” said Mr. Marleix.

Write to Noemie Bisserbe at noemie.bisserbe@wsj.com