French unions are striking nationwide as lawmakers begin debating President Nicolas Sarkozy’s bill to raise the retirement age.

Transport workers began walking off the job last night, and today many schools, post offices, and government offices will be closed. Demonstrations are planned in 137 cities.

Sarkozy has vowed not to compromise on the key plank of his pension proposals, which would lift the retirement age to 62 from 60. The bid to shore up the retirement system may calm bond investors and rating services in the wake of Europe’s sovereign debt crisis.

“The pension reform is absolutely essential,” said Philippe Delienne, chairman of Convictions Asset Management in Paris, which oversees about 780 million euros ($1 billion). “It’s very important for France to be credible within Europe and to show the rest of Europe that the big countries are doing their bit.”

France now pays about 2.6 percent to borrow for 10 years, compared with 3 percent for the U.K and 2.7 percent for the U.S. Still, that’s more than the 2.3 percent paid by Germany, whose bunds set Europe’s benchmark borrowing costs. All have the highest ratings from companies including Moody’s Investor Corp. and Standard & Poor’s.

Loe veel: Bloomberg