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National Assembly Approves CSG Increase on Capital Income in First Reading

Government backing was tentative, with the measure now heading to a right-led Senate where its fate is uncertain.

Overview

  • A Socialist amendment by Jérôme Guedj lifts one component of the CSG from 9.2% to 10.6%, expected to raise about €2.7–€2.8 billion in 2026 to help finance the suspension of the pension reform.
  • The measure passed 168–140 after parts of the presidential majority joined the left, while Les Républicains, Horizons and the National Rally voted against.
  • Public Accounts Minister Amélie de Montchalin urged a yes vote to keep the topic alive in the legislative shuttle, signaling the details could change later.
  • Lawmakers rejected a proposed surtax on complementary health insurers and pushed back on freezing the CSG scale, scrapping key government financing options.
  • Retiree groups demonstrated on November 6, and CGT, Solidaires and FSU called a national strike for December 2 as right-wing leaders condemned the hike and vowed to undo it in the Senate.