French deputies have adopted a Socialist amendment to the 2026 Social Security financing bill, increasing the generalized social contribution (CSG) on certain patrimony and investment incomes. This measure, expected to yield 2.66 billion euros, aims to fund the suspension of the pension reform. It represents a victory for the Socialists, backed by part of the central bloc.
On Wednesday evening, during the public session examination of the 2026 Social Security financing bill (PLFSS) at the National Assembly, deputies adopted an amendment presented by the Socialists. This amendment provides for an exceptional increase in the generalized social contribution (CSG) on certain patrimony and investment incomes, such as savings interest and rents. The expected yield is 2.66 billion euros for Social Security, according to Le Figaro.
This measure affects several million French people, particularly savers and property owners, who will see their incomes taxed more heavily. It comes amid heated budget debates marked by left-wing divisions: a first PS amendment on the CSG was rejected due to lack of support from La France insoumise (LFI) and the Ecologists, but the second gained broad consensus, including deputies from Renaissance and other central bloc parties.
The government conceded this suspension of the 2023 pension reform in exchange for the Socialists' immediate non-censure. 'This is a new victory for the Socialists, who have managed to impose their mark on the Social Security budget,' notes Le Figaro. Right-wing voices, like Bruno Retailleau, denounce a 'fiscal hold-up' and 'fiscal delirium,' arguing it discourages investment. Conversely, Mathilde Panot (LFI) welcomes having secured a 'better' amendment after rejecting an initial insufficient compromise.
Debates continue until November 12, with other modifications adopted, such as the rejection of an employer contribution on meal vouchers. This CSG increase highlights budgetary tensions amid Social Security's growing deficit.
