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French Senate Takes Charge of Contentious Social Security Budget

The Senate begins deliberations on a controversial budget proposal after the National Assembly's failure to reach consensus.

  • The French government, led by Prime Minister Michel Barnier, faces challenges in passing the Social Security budget, with key issues like employer charge reductions causing division.
  • The Senate, dominated by Republicans and centrists, is expected to support the government more than the fragmented National Assembly did.
  • Debates will focus on proposed changes to employer charge exemptions, with a compromise suggesting a reduction to three billion euros in savings.
  • A new 'contribution of solidarity' proposes seven unpaid work hours annually per employee to fund elderly care, a measure likely to be contentious.
  • The Senate plans to increase taxes on sugary drinks, tobacco, and online gambling to boost revenue, reflecting a focus on fiscal responsibility.
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