French lawmakers began examining the 2026 social security financing bill on October 27, 2025, amid tensions over suspending the pension reform and drastic savings measures. A government amendment increasing the surtax on large companies was adopted, while the Zucman tax debate was postponed. Discussions are set to be contentious with a projected deficit of 17.5 billion euros.
On October 27, 2025, the National Assembly's social affairs commission began reviewing the 2026 social security financing bill (PLFSS), delayed by four days to include the suspension of the 2023 pension reform. The bill projects 676.9 billion euros in spending against 659.4 billion in revenues, reducing the deficit to 17.5 billion euros from 23 billion in 2025. Measures include capping health spending growth at 1.6%, seven billion euros in health savings, higher medical franchises, and freezing social benefits for 3.6 billion euros in savings.
Debates quickly turned contentious. Lawmakers deleted the introductory article and Article 1 on budget forecasts, signaling rejection of the government's trajectory. A government amendment raising the exceptional surtax on large companies' profits from 4 to 6 billion euros was adopted 196-149, focusing efforts on the largest firms. The French Association of Private Enterprises (Afep) condemned the extension as an 'error' ignoring economic reality, warning of impacts on innovation and employment.
The pension reform suspension, promised to socialists in exchange for no censure, draws opposition. The Senate, led by Gérard Larcher, plans to reinstate it, highlighting a 30 billion euro deficit cost by 2035. Deputies rejected an 8% employer contribution on restaurant vouchers and vacation checks, criticized by Nathalie Colin-Oesterlé (Horizons) and Jérôme Guedj (PS) for burdening SMEs and affecting purchasing power. They also removed the CSG bracket freeze and adopted a capital income tax increase.
Debate on the PS's 'Zucman light' amendment, taxing estates over 10 million euros at 3%, was postponed as Economy Minister Roland Lescure travels Wednesday. Gabriel Zucman expressed concerns over exemptions but praised a taxation 'floor.' Boris Vallaud (PS) stated 'everything is possible,' including censure. Tensions flared between PS and RN, with Jean-Philippe Tanguy accusing Philippe Brun of government collusion.
