National Assembly rejects 2027 Social Security bill in first reading
The Assembly's rejection leaves the 2027 Social Security bill to a November Senate review, with no compromise yet and a constitutional route expected.
Event / Politics
French parliamentary commission rejects government's 2027 Social Security budget proposal that seeks to reduce deficit from 21.8 billion to 12.7 billion euros through cost cuts and pension freeze measures. Despite rejection, the budget proceeds to full parliamentary debate with potential government use of constitutional Article 49.3 to bypass majority requirement.
2026-10-16 to 2026-10-26 · UTC publication dates
Coverage begins 16 Oct, 17:38 UTC
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The government's 2027 Social Security budget bill aims to reduce the Social Security deficit to 12.7 billion euros in 2027, compared with 21.8 billion euros in 2026. The plan relies notably on health spending cuts, including one billion euros in savings on sick leave.
The National Assembly adopted an amendment, sponsored by the Rassemblement national group, abolishing the contribution sociale de solidarité des sociétés (C3S). The government estimates the cost of this measure at 5.5 billion euros.
Last year's Social Security budget was adopted after the government reached an agreement with the Socialist Party. The agreement included suspending the pension reform. No comparable agreement was reached for the 2027 bill.
Before the final vote, deputies removed most articles of the government's 2027 Social Security bill. Removed measures included a reduction of employer social contribution exemptions projected to yield 3.7 billion euros, a renewed surtax on mutual insurers projected to yield 1.1 billion euros, and a new tax on sugary processed products projected to yield 300 million euros.
The government, through the Minister for Public Accounts David Amiel, estimates that the votes adopted by the Assembly would bring the 2027 Social Security deficit to 24 billion euros. The original bill targeted a deficit of 12.7 billion euros.
No compromise has emerged between the government and parliamentary groups on the 2027 Social Security bill. Observers expect the government to use article 49 paragraph 3 of the Constitution or a budget ordinance to pass the bill without a parliamentary majority vote.
The National Assembly adopted an ecologist group amendment allowing employees who have contributed for 42 years to stop working at age 62. The government estimates the measure would reduce Social Security revenue by 1.2 billion euros.
Because the revenue section was rejected, the Assembly did not debate the spending section of the 2027 Social Security bill. That section included a pension revaluation below inflation for two-thirds of retirees.
On Friday 23 October 2026, the National Assembly rejected the government's 2027 Social Security budget bill in first reading by voting 115 to 1 against its revenue section. The bill was sent directly to the Senate, which is scheduled to examine the original government text.
The Senate is scheduled to begin examining the original government text of the 2027 Social Security budget bill in its chamber on 9 November 2026.
The National Assembly adopted Article 6 of the Social Security budget bill, which sets a single ceiling for social contribution and CSG exemptions on contract termination compensation. The ceiling equals the 2026 Social Security ceiling of 48,060 euros, replacing the current ceiling, which is double that amount.
On 21 October 2026, the National Assembly adopted an amendment banning the use of hexane in food production processes and in certain animal feed intended for human food consumption, starting in 2027. The government opposed the amendment. Hexane is a solvent widely used to extract vegetable oils, and it is recognized as neurotoxic and suspected of being an endocrine disruptor.
The amendment establishes a 10% contribution on the sectors affected by the hexane ban, paid to the Assurance Maladie (French national health insurance). The contribution is based on the polluter-pays principle.
The government's Social Security budget bill for 2027 aims to reduce the deficit from 21.8 billion euros in 2026 to 12.7 billion euros in 2027. The National Assembly is examining the revenue provisions of the bill during the week of 21 October 2026.
On the evening of 21 October 2026, the left proposed amendments to reduce the Social Security deficit by increasing revenue, including taxes on dividends, excess profits, inheritances and artificial intelligence. These amendments were not adopted.
On 21 October 2026, the National Assembly adopted an amendment by Laurent Mazaury (Liot) requiring private maternity clinics that decide to stop their activity to make a financial contribution of 15% to 20% of their revenue over three years.
The Social Security budget bill for 2027 appears likely to be rejected in the National Assembly. The hexane ban adopted within it is therefore considered unlikely to be enacted.
Thibault Bazin, the general rapporteur of the Social Security budget bill, opposed the hexane measure. He argued that available studies show no risk from hexane residues in food, with health problems associated with repeated and prolonged exposure to the solvent. He also argued that a ban does not fall within the legislative scope of a Social Security budget bill.
The National Assembly adopted an amendment by Édouard Bénard (Gauche démocratique et républicaine) that keeps the existing regime for termination-related indemnities paid as compensation for harm.
On 21 October 2026, the National Assembly adopted new exemptions from social security contributions, notably for apprentices and older people. The government had warned about their cost to public finances.
The Assembly's rejection leaves the 2027 Social Security bill to a November Senate review, with no compromise yet and a constitutional route expected.
Deputies approved a 2027 hexane food-manufacturing ban over government opposition, but the budget bill carrying it faces likely rejection.
Government plans constitutional bypass or executive orders if parliament blocks 2027 budget.
Opposition parties rejected pension freeze, but commission blocked progressive tax amendments.
Parliament rejects 3.7 billion euro Social Security revenue measure for 2027 budget.