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French National Assembly Approves Targeted CSG Hike on Capital Income to Fund Pension Reform Suspension

The government signaled guarded support to keep the amendment alive through the next legislative stages.

Overview

  • The amendment by Socialist MP Jérôme Guedj raises a fraction of the CSG rate from 9.2% to 10.6%, with about €2.8 billion expected in 2026.
  • It passed 168–140 after many Renaissance and MoDem deputies backed the left, while LR, Horizons and RN opposed.
  • The measure targets specific capital receipts including certain rental income, insurance‑contract proceeds, dividends, employee savings plans, PEL accounts and capital gains.
  • Public Accounts Minister Amélie de Montchalin said the first‑reading vote enables further debate rather than enacting a final tax increase.
  • Lawmakers also rejected a government surtax on mutual insurers and a freeze of the CSG scale, and an earlier similar PS proposal failed, exposing left‑wing divisions.