Overview
- The National Assembly approved a Socialist amendment lifting a fraction of the CSG on capital income from 9.2% to 10.6%, expected to raise about €2.7–€2.8 billion in 2026 to help finance the suspension of the 2023 pension reform.
- In a confused sequence, deputies also voted to abolish the C3S production levy worth roughly €5–€5.4 billion, prompting the government and committee leadership to seek a second deliberation after several Renaissance members said they misvoted.
- The CSG increase passed with support from many Renaissance and MoDem deputies despite opposition from LR, Horizons and the RN, exposing rifts on the left after an earlier Socialist version was rejected when LFI voted against.
- Right-wing leaders condemned the tax increases and pledged to undo them in the Senate, as the government maintained the overall deficit path near 4.7% of GDP based on first-reading votes.
- Separately, deputies adopted LR amendments to cut the cost of overtime for companies with more than 250 employees, a measure the budget minister estimated would cost less than €150 million, and unions CGT, Solidaires and FSU called a nationwide mobilization for December 2.