French lawmakers reject key budget article

French parliamentarians rejected Article 7 of the PLFSS (Law on the Organization of the State and the Budget of the Social Security) after three days of intense debate. The article was central to the government’s efforts to correct the Social Security accounts, but it faced opposition from various political groups.

Debates reduce expected revenues

The debates included several votes that either reduced expected revenues for the Social Security or introduced new expenses. Despite government warnings about the need to correct the social accounts, the outcome of the voting process undermined these goals.

Socialist deputy criticizes rejection

Socialist deputy Jérôme Guedj criticized the rejection, stating, "This PLFSS, you are killing it." He blamed his colleagues for undermining the correction of the Social Security accounts by refusing to provide it with additional revenues.

Government proposal on employer contributions rejected

The government had proposed reducing employer contribution exemptions for companies that pay profit-sharing or participation bonuses to their employees. However, several amendments, notably supported by Macronist deputy Annie Vidal and the right, eliminated this provision, which was seen as burdensome for businesses.

Labor minister warns of financial impact

Labor Minister Jean-Pierre Farandou warned deputies at the beginning of the session about the financial impact of their proposals, stating, "We are no longer talking about the 15 million or the 100 million that were mentioned yesterday, we are talking about billions of euros." He expressed that he was "a bit astonished" by the scale of the potential costs.

Heated exchanges on the value of work

The debates also included heated exchanges on the value of work. The left attempted, without success, to revisit several exemptions of contributions related to overtime hours and the purchase of RTT (Reduced Time for Work), arguing that they deprived the Social Security of revenues.

Right-wing deputy criticizes left’s proposals

RN deputy Matthias Bentz denounced a "vicious circle" in the left's proposals aimed at increasing levies, arguing that they would harm companies and the purchasing power of employees. He claimed the proposals were detrimental to both employers and workers.

Green deputy threatens censure

Green deputy Sandrine Rousseau threatened a censure motion, accusing her opponents of going back on previously concluded compromises. She stated, "You are looking for a censure, well you will get it," and called for an end to the examination of the budget, which she said had become useless due to a lack of compromise.

Government aims to cut Social Security deficit

The government intends to reduce the Social Security deficit from the expected 21.8 billion euros in 2026 down to 12.7 billion in 2027. The rejection of the entire part devoted to revenues could prevent deputies from continuing the examination of the Social Security budget expenses.