France's Prime Minister Sebastien Lecornu backed the suspension of an unpopular 2023 pensions reform, in a key move to bolster his cabinet's survival and draw his country out of political crisis.

The eurozone's second-largest economy has been battling a deep political crisis since President Emmanuel Macron called snap elections last year that were intended to consolidate his power but instead resulted in a hung parliament and gains for the far right.

After parliament toppled the two previous premiers over cost-cutting measures, Lecornu – the president's sixth premier in two years – is battling to keep his cabinet alive long enough to pass a much-needed austerity budget by the end of the year.

The widely unpopular 2023 pension reform aimed to raise the retirement age from 62 to 64, with the Socialists – a key swing vote in parliament – threatening to topple the premier yet again unless it was immediately put on hold.

Macron intended the pension reform as one of his legacy achievements, but Lecornu has had to sacrifice it to ensure the government's survival and stave off a stark escalation in France's months-long political crisis.

The Socialists welcomed his concession, saying they would not vote to topple him in no-confidence votes on Thursday, meaning Lecornu will almost certainly live to fight another day.

Socialist lawmaker Boris Vallaud called the move a "victory" for his party and said his group was ready to take a "gamble" to allow debates on the budget to proceed.

"We are capable of compromise," he said, before adding a warning: "We are capable of bringing down a government."

Worst political crisis in decades 

Lecornu's proposal to mothball the pension overhaul threatens to kill off one of Macron's main economic legacies at a time when France's public finances are in a perilous state, leaving him with little in the way of domestic achievements after eight years in office.

France has been mired in its worst political crisis in decades as a succession of minority governments have sought to push deficit-reducing budgets through a truculent legislature split into three distinct ideological blocs.

The pension bill, which a previous government used a constitutional power to force through parliament without a vote, sparked months of angry protests.

Lecornu also promised he would not use the controversial tool to bypass a vote in parliament on any draft laws, and put all proposed bills to debate.

"The government will make suggestions, we will debate, and you will vote," the 39-year-old Macron loyalist repeated throughout his address.

Below five percent

The premier's speech follows a dramatic fortnight in French politics.

Lecornu, who became prime minister last month, resigned on Monday last week after criticism of his newly appointed government.

He was re-appointed on Friday and proposed a new team of ministers on Sunday – just in time for the government to approve and file a draft budget with parliament.

In the draft approved by his government Tuesday, France's public deficit was cut to 4.7 percent of gross domestic product (GDP), Lecornu said, warning it must remain below five percent after parliamentary debate on the budget.

France's debt-to-GDP ratio is the European Union's third-highest after Greece and Italy, and is close to twice the 60 percent limit fixed by EU rules.

Freezing the pension reform would cost around $465 million in 2026 and $2.09 billion the following year, Lecornu said, adding that the shortfall should be covered by savings.

The former defense minister told lawmakers the move was not about "suspending for the sake of suspending," but an opportunity to chart a new course for the country's pension system.

'Fear the ballot box'

Lecornu is under severe pressure from opponents.

The hard-left France Unbowed party and far-right National Rally have already filed motions to topple Lecornu's new cabinet, although they stand little chance of succeeding without the backing of the Socialists.

Earlier on Tuesday, Macron had warned that any vote to topple Lecornu's cabinet would force him to dissolve parliament and call fresh elections.

Macron has faced unprecedented criticism. Some opposition leaders are urging him to call snap elections or resign, and even key allies such as former prime minister Edouard Philippe have distanced themselves from the 47-year-old president.

The far right senses its strongest chance yet to seize power in the 2027 presidential elections, when Macron's second and last term runs out.

National Rally leader Jordan Bardella mocked the new government as "Emmanuel Macron's savior club", saying its members shared only a "fear of the ballot box".