The National Assembly adopted on Wednesday, November 5, an increase in the generalized social contribution (CSG) on capital income, proposed by the socialists to fund the suspension of the pension reform. Jérôme Guedj's (PS) amendment, supported by part of the government camp, aims to raise 2.8 billion euros in 2026. The measure passed with 168 votes in favor against 140, despite opposition from the right and the National Rally.
Debates on the Social Security Financing Bill (PLFSS) for 2026 were marked by divisions within the left and unexpected alliances. An earlier similar socialist amendment had been rejected earlier in the evening due to fractures between the Socialist Party (PS), La France Insoumise (LFI), and the ecologists. Mathilde Panot (LFI) denounced a 'non-censure deal,' while Sandrine Runel (PS) accused the insurgents of practicing 'all or nothing.'
The adopted amendment raises the rate of a CSG fraction from 9.2% to 10.6% in 2026, then to 11.2% in 2027. It targets real estate income, savings products like life insurance, dividends, employee savings, home savings plans (PEL), and capital gains on real estate and securities. Jérôme Guedj dismissed criticisms, stating it mainly affects shareholders' dividends and only marginally impacts average PELs (50 cents per month).
Amélie de Montchalin, Minister for Public Accounts, expressed reservations and wished for revisions during the parliamentary shuttle. Laurent Wauquiez (LR) regretted that it taxes 'life insurance and PELs,' and Jean-Philippe Tanguy (RN) called it 'financing the deals between the PS and the government.'
Additionally, the Assembly overwhelmingly rejected (234 against 61) the government's proposed freeze on the CSG scale to save 300 million euros in 2026, seen as a disguised increase for modest retirees. It also turned down the surtax on mutual insurers, which would have added one billion euros to the tax on health complements, to fund the suspension of the 2023 pension reform.
These votes occur in a tense context, with socialists having renounced censuring Sébastien Lecornu's government to secure concessions. Debates will continue until November 12, with a solemn vote scheduled for that day.
