The French Parliament approves the first part of the social security budget amid divisions over the suspension of pension reform.
The French National Assembly has approved the revenue portion of the 2026 Social Security financing bill with a majority of 176 votes to 161, paving the way for discussions on the expenditure portion, particularly regarding the crucial provision related to the suspension of the pension reform enacted in 2023.
This vote comes in a tense political context, as the new Prime Minister, Élisabeth Borne, has made this suspension one of her key political promises to avert a confidence vote against her government and ensure the long-delayed passage of the 2026 budget amid a political crisis.
The suspension of the reform is expected to cost around 400 million euros in 2026 and 1.8 billion euros in 2027. To offset these costs, the government is considering increasing the General Social Contribution (CSG) imposed on capital income as part of a new financial package.
Meanwhile, there is a division within the ruling “Renaissance” bloc, with some deputies opposing a rollback on a reform they previously supported, while others prefer to align with the government’s initiative to engage with the Socialist Party.
The discussion on the suspension of the reform is set to occur on Wednesday, November 12, provided the revenue portion is definitively adopted. The parliament faces a tight schedule with over 600 amendments under consideration, as the government seeks to avoid resorting to Article 49-3, which allows for the passage of legislation without a vote.
This vote represents a crucial political moment that has brought the debate over pension reform back to the forefront, simultaneously revealing the fragility of the parliamentary majority and the financial pressures facing the French government.
