Deputies reject social security budget

Deputies in the Social Affairs committee rejected the 2027 social security budget (PLFSS) on Friday, October 16, signaling a significant challenge to the government’s financial plans for the social security system.

Government aims to reduce deficit

The government's proposal seeks to cut the social security deficit from 21.8 billion euros in 2026 to 12.7 billion euros by 2027, mainly by reducing pension payments for retirees and not adjusting them for inflation.

Deputies oppose pension changes

Deputies criticized the non-indexation of two-thirds of pension payments to inflation, calling it a "scandalous cut" and a way of "putting generations back to back." The general rapporteur, Thibault Bazin (LR), said the committee's changes would leave the deficit at 21.39 billion euros.

Other measures also rejected

The committee also rejected a plan to raise 3.7 billion euros by adjusting employer contributions and removed a proposed extension in 2027 of an exceptional tax on health insurance supplements, which would have generated 1.1 billion euros.

Soda tax approved

However, the committee approved extending the "soda tax" to the most sugar-rich pre-packaged products, a move aimed at addressing public health concerns related to sugar consumption.

Left's amendments rejected

The left proposed several amendments to increase revenue from the wealthiest individuals, large companies, and dividends, but these were all rejected by the committee. Unlike last year, there was no negotiation with the government.

No negotiation with government

Unlike previous years, the committee did not engage in negotiations with the government over the budget, and some deputies expect the "revenues" section to be rejected soon, sending the text directly to the Senate.

Potential constitutional override

If the "revenues" section is rejected, the "expenditures" part, including the deindexation of pensions, would not be discussed in the Assembly. Prime Minister Sebastien Lecornu may then use article 49 paragraph 3 of the Constitution or issue ordinances to pass the original text before the November deadline.

Provisions seen as favoring far-right

Some provisions in the budget were interpreted as an "outstretched hand" to the far-right National Rally party, such as a one-year waiting period for certain non-European foreigners to receive benefits. This measure was also rejected in committee.