French Senate rejects 2026 social security budget after Assembly compromise

Following the National Assembly's narrow approval last week, the French Senate rejected the 2026 Social Security Financing Bill (PLFSS) on Friday via a procedural motion, sending it back for a final Assembly vote on Tuesday. The rejection underscores right-wing and centrist opposition to the bill's deficit reduction approach.

In the ongoing legislative process for the 2026 PLFSS—narrowly adopted by the National Assembly on December 9 without Article 49.3—the Senate, led by the right and centrists, outright rejected the bill on December 12 through a 'question préalable' motion, concluding debate in under a morning.

Centrist rapporteur Elisabeth Doineau called further shuttle negotiations pointless, labeling the text a Senate 'failure' for relying on revenue increases rather than spending cuts. Senators criticized key concessions like suspending pension reform until 2028 (to secure Socialist support), lifting benefit freezes, and raising CSG on certain capital income.

Republicans leader Bruno Retailleau decried a 'fiscal hold-up,' while Public Accounts Minister Amélie de Montchalin defended the plan to cut the deficit from 23 billion euros in 2025 to 19.4 billion in 2026, including 4.5 billion in state transfers. The Senate had targeted 17.6 billion in its first reading.

The bill now returns to the Assembly for a decisive vote on December 16, amid uncertainty. Separately, the state budget remains under Senate scrutiny until Monday.

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The French Senate adopted on Wednesday afternoon its heavily revised version of the 2026 social security financing bill (PLFSS), with 196 votes in favor and 119 against. The joint committee (CMP) of deputies and senators then failed to reach an agreement in the evening, sending the text back to the National Assembly for a new reading. This Senate version restores several government measures, such as the retirement reform, and brings the deficit to 17.6 billion euros.

The French National Assembly adopted the 2026 social security funding bill (PLFSS) on December 9 by a narrow margin of 13 votes, thanks to a compromise with the Socialist Party. This success for Prime Minister Sébastien Lecornu includes the suspension of the pension reform, a key Socialist demand. The bill introduces several health measures but draws criticism from the right and far right.

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