The message was delivered as thousands of protesters took to the streets for 38th day of protests andstrikes

French government has offered to withdraw plan to raise pension age by two years in compromise to unions


France's government offered a possible compromise to unions waging a crippling, weeks-long transport strike against pension reform.

The government on Saturday offered to withdraw the most contested proposal that would in effect have raised the retirement age by two years.

'To demonstrate my confidence in the social partners... I am willing to withdraw from the bill the short-term measure I had proposed' to set a so-called 'pivot age' of 64 with effect from 2027, Prime Minister Edouard Philippe wrote in a letter to union leaders a day after they met seeking to end the labour action, now in its 38th day.

An advertising screen on fire during a demonstration in Paris, on January 11, as part as a nationwide multi-sector strike against the French government's pensions overhaul

A riot police officer sprays a liquid on a yellow vest demonstrator during a demonstration Saturday

A man dressed as the comic book character Obelix confronts a French policeman as protesters demonstrate in Paris

A French policeman aims his 40 millimetre rubber defensive bullet launcher (LBD 40)

Women chant slogans against French President Emmanuel Macron during a demonstration in Paris

An advertising screen on fire during a demonstration in Paris. The country has been hit by 37 days of crippling train and metro stoppages as unions battle the proposals, one of President Emmanuel Macron's signature reforms

An advertising screen on fire during a demonstration in Paris, on January 11

A man tries to extinguish an advertisement board set on fire during a demonstration of French labour union members and workers

The message was delivered as thousands of protesters took to the streets of Paris and other major cities in the fifth mass mobilisation since December 5 to demand the government drop the pension overhaul.

The government is seeking to fuse 42 existing pension schemes into a single, points-based system it says will be fairer and more transparent but which unions fear will see millions work longer for a smaller retirement payout.

Particularly vexing was the proposal to impose a 64 'pivot age' that people will have to work until to qualify for a full pension - two years beyond the official retirement age.

- Protesters run away from tear gas during a demonstration in Paris, on January 11 as part as a nationwide multi-sector strike against the French government's pensions overhaul

People run for cover during a protest called by the 'Yellow Vest' (gilets jaunes) anti-government movement in Nantes, Western France on Saturday

People kicks on a tear gas canister during a protest in Nantes, Western France on Saturday

Masked demonstrators take part in a protest called by the 'Yellow Vest' in Nantes

Protesters burn trash bins in response to security forces' intervention in Paris, on Saturday

Security forces intervene in a protest against the government's pension overhaul in Paris on Saturday

Protesters clash with riot police as they participate in a demonstration against pension reforms

A protester with a Gallic costume demonstrates in Pari

Protesters run away from tear gas during a demonstration in Paris on January 11

On Friday, Macron defended the reform, saying that for the pension system to remain viable as a growing number of retirees live ever longer, 'either one has to contribute more, or one has to agree to work a little longer', while insisting he does not want to see pensions lowered.

The government said the proposed 'pivot age' would plug pension deficits set to soar in coming years, saving five billion euros ($5.6 billion) by 2023 and some 11 billion euros by 2026.

Philippe said Saturday the concept of an 'age of equilibrium' would remain part of the reform, though he did not spell out what this means.

The premier also announced there would be a conference, as demanded by unions, to study ways of financing the pension system, which must come up with proposals by the end of April.

Firefighters try to extinguish fire after protesters burn a billboard during clashing with security forces following their intervention in a protest against the government's pension overhaul in Paris on Saturday

Protesters burn trash bins in response to security forces' intervention in the protest on Saturday

Firefighters try to extinguish fire after protesters burn a billboard

People demonstrate on Republic Square (Place de la Republique). The country has been hit by 37 days of crippling train and metro stoppages as unions battle the proposals, one of President Emmanuel Macron's signature reforms

French riot police officers detain a demonstrator on Republic Square

People stand near a fire during a demonstration on Republic Square

If the conference fails, the government will take the 'measures necessary to achieve equilibrium' in the system by 2027, the prime minister warned.

But if it achieves its mandate, the parliament will be able to work the resulting proposals into the draft pension reform bill.

The government seeks to present its reform plan to the cabinet by January and the National Assembly by February 17, but it can still be redrafted later.

The moderate CFDT union welcomed 'the withdrawal of the pivot age' from the bill.