Pension freeze sparks Assembly debate

The government's proposed freeze on pensions has ignited controversy in the Assembly as deputies began examining the social security budget proposal in committee on Monday. The debate comes as Parliament has until the end of November to express its opinion on the text, or the government may pass it by decree.

Amendments flood the proposal

More than 1,600 amendments have been submitted by political groups before the text is presented in the chamber on October 20. The budget rapporteur, LR Thibault Bazin, noted that several proposed measures, at least in their initial form, seem very difficult to adopt.

Political differences on deficit reduction

During the presentation of the proposal by ministers last week, no parliamentarian explicitly attacked the government's goal of reducing the social security deficit, which is expected to be 21.8 billion euros in 2026. However, differences on how to achieve this are profound, with debates expected to continue until midnight on Friday.

Left opposes burden on low-income groups

The entire left promises to censure the government, believing the burden is disproportionately placed on the least well-off, without companies and the wealthiest being required to contribute. Including the PS, which had mostly voted for the text last year in exchange for the suspension of the pension reform.

Government plans to freeze pensions and benefits

The government plans not to re-evaluate next year pensions above 1,265 euros, for a saving of 4.1 billion euros. For higher pensions, the text proposes to allow sub-indexation through regulatory means. It also plans to freeze social benefits such as family allowances and the school start allowance, for a saving of 1.1 billion euros.

Critics highlight poverty threshold concerns

LFI deputy Hadrien Clouet noted that "one does not live well with 1,265 euros," pointing out that the poverty threshold is set at 60% of the median income, or 1,337 euros per month. Socialist deputy Sandrine Runel denounced the government for overlooking the need to increase the revenues of the social security and defended the creation of a progressive general social contribution.

RN opposes burden on French citizens

The RN has not explicitly raised the threat of a censure but expressed aversion for a text "that will make the French pay again," according to RN deputy Joëlle Mélin. It also denounces the transfers of reimbursement from the Health Insurance to complementary health insurance - 700 million euros - for spa treatments and hospital expenses.

Far-right supports waiting period for benefits

The far-right party, on the other hand, sees favorably the one-year waiting period planned for the payment of certain social benefits to foreigners, which echoes its program. It also criticizes the tax on sugary products (300 million euros) that will make "rewards and comfort" products that the French buy more expensive, according to Mélin.

Parliamentary allies show cautious support

The parliamentary allies of the executive currently show reserved support for the budget proposal. During the hearing of ministers last week, only the EPR group expressed its favor for the pension deindexation proposed by the executive.

Budget will affect more than retirees

Retirees will not be the only ones affected by the budget tightening, as employees, complementary organizations, pharmaceutical companies, or even the beneficiaries of the highest indemnities in case of contract termination will also be affected, emphasized EPR deputy Annie Vidal. The budget proposal also includes a reduction in social contribution exemptions for companies, which should provide an additional 3.7 billion euros in revenue for the social security.

LR seeks additional public spending cuts

LR, as well as Horizons, has expressed its desire to find "real savings on public spending," according to the words of LR deputy Justine Gruet, promising to find "an additional 20 billion in savings." After this first round of warming up in committee, the debates in the chamber will begin on Tuesday, October 20, starting from the initial version of the bill, before a vote scheduled for October 27.