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Assembly Rejects Social Security Receipts, Blocking 2027 Budget

A roughly €24 billion shortfall now forces the government to choose between new talks, invoking article 49.3, or issuing an unprecedented ordonnance.

Overview

  • The National Assembly voted to reject the 'recettes' section of the 2027 Social Security finance bill, a first‑reading defeat that legally prevents debate on the bill’s spending side.
  • The vote took place on Friday, October 23, and followed a week of rollbacks in which deputies removed key revenue measures and some government articles.
  • Parliamentary changes included the rejection of a €3.7 billion measure to reduce employer contribution exemptions and the adoption of opposition measures such as a 42‑year cotisation early‑retirement device and the suppression of the C3S.
  • Ministers said the deputies’ decisions would widen the Social Security shortfall from the government's €12.7 billion target to about €24 billion, leaving choices to negotiate, use article 49.3 to force passage at the risk of a censure motion, or pursue an unprecedented ordonnance to impose the budget.
  • The setback complicates the bill’s path to the Sénat, scheduled for November 9, and raises the prospect of higher contributions, delayed payments, or benefit limits if a parliamentary compromise is not found.