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France’s Budget Talks Stall as Assembly Halts Revenue Vote and Shifts to Social Security Bill

Government contingency planning intensifies, with a €23 billion Social Security deficit heightening pressure on the stalled budget process.

Overview

  • After eight days of debate, the National Assembly failed to complete the revenue section, leaving more than 2,000 amendments and postponing any vote as the Social Security budget moves onto the floor Tuesday.
  • Public Accounts Minister Amélie de Montchalin pledged to transmit all amendments adopted by deputies to the Senate, acknowledging the risk of missing the 23 November transmission deadline.
  • Deputies approved contentious measures including an RN-backed restoration of the exit tax and tighter Dutreil rules, while rejecting the taxation of long‑term illness benefits.
  • Left-wing groups boycotted a government negotiating meeting because the RN was invited, and senior MPs across parties doubt Part I can pass, raising talk of ordinances or a special law if no budget is enacted by 23 December.
  • As PLFSS debate opens, the Cour des comptes warns the Social Security deficit is about €23 billion in 2025 and urges swift action, while the government targets a €17.5 billion gap in 2026 and signals retreats on some savings.