The presentation of the 2025 Social Security budget bill by Health Minister Geneviève Darrieussecq took place in Paris on October 10, 2024. Just a week after the “revenue” section of the budget arrived in the Hemicycle, the National Assembly was set to begin examining the Social Security Financing Bill (PLFSS) for the year 2025 on October 28. However, in a unanimous vote, the Commission for Social Affairs, made up of lawmakers from all political backgrounds, rejected the PLFSS on October 25. This rejection has set the stage for heated debates in the National Assembly, with the possibility of the government using Article 49.3 of the Constitution to pass the “Sécu” budget without a vote.
Numerous provisions of the bill were rejected during the commission’s review. One contentious issue is the proposed changes to employer social security contributions, based on a report submitted by economists Antoine Bozio and Etienne Wasmer on October 3. The government aims to modify this system to incentivize employers to increase wages. However, this proposal faced opposition from lawmakers, including an alliance between the Rassemblement National (RN) and the Ensemble pour la République and Droite républicaine groups, who voted to remove the article in commission. This measure was expected to generate 4 billion euros by targeting exemptions on employer social security contributions.
A significant point of contention was the government’s plan to delay the pension revaluation by six months to July 1, 2025. This move, which aims to save nearly 4 billion euros, faced opposition from various political parties and lawmakers, who expressed concerns about the impact on retirees. Lawmakers across different parties emphasized the need for structural measures while ensuring that savings were not achieved at the expense of retirees. This decision to delay pension revaluation sparked criticism from various quarters, with accusations that the government was eroding trust between retirees and the state.
The rejection of the PLFSS by the Commission for Social Affairs signifies a setback for the government’s efforts to reduce the deficit and restore public finances. The debates surrounding the PLFSS are expected to be intense in the National Assembly, with the possibility of the government resorting to constitutional measures to pass the budget. Despite facing opposition in commission, the government remains determined to tackle the financial challenges and stresses the importance of fiscal responsibility in the discussions.
The rejection of key provisions in the PLFSS highlights the divergent opinions and strong opposition to certain measures within the bill. Lawmakers have raised concerns about the potential impact of proposed changes to social security contributions and pension revaluation on various groups, including retirees. The government’s commitment to reducing the deficit while navigating through contentious debates in the National Assembly underscores the complex nature of budgetary decisions and the importance of balancing fiscal objectives with social welfare considerations.
Overall, the rejection of the PLFSS by the commission and the ensuing debates in the National Assembly signal a challenging road ahead for the government in passing the Social Security budget for 2025. The differing views on key measures within the bill reflect the broader political landscape and the competing priorities of fiscal discipline and social protection. As lawmakers continue to deliberate on the PLFSS, the outcome of these discussions will have significant implications for the future of social security policies and public finances in France.
