French MPs reject €3.7bn social security measure — Anadolu Agency

French lawmakers on October 22 rejected a provision in the 2027 social security financing bill that was expected to generate €3.7 billion in revenue. The decision complicates the government’s plans to reduce the system’s deficit, Anadolu Agency reports, citing BFMTV.

Changes for employers

The measure was included in Article 7 of the bill. It provided for reducing employers’ contribution exemptions for companies that pay employees profit-sharing bonuses or share-based bonuses.

After three days of debate, lawmakers backed amendments removing the provision. They were supported by representatives of President Emmanuel Macron’s camp and right-wing lawmakers, who considered the proposed mechanism harmful to business.

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Government plans for the deficit

Labor Minister Jean-Pierre Farandou warned that lawmakers’ proposals would have financial consequences already measured in billions of euros. Socialist lawmaker Jérôme Guedj said that such decisions jeopardize the restoration of the social security system’s finances.

The French government seeks to reduce the social security deficit from an expected €21.8 billion in 2026 to €12.7 billion in 2027. If lawmakers reject the entire revenue section of the bill, they will not be able to move on to considering its expenditure section.