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National Assembly Narrowly Approves 2026 Social Security Revenue Bill, Paving Way for Spending Fight

The close vote preserves the path to debating a temporary halt to the pension reform as lawmakers shift to the expenditure chapter before a 12 November overall vote.

Overview

  • The revenue section passed 176–161, preventing the entire bill from being sent to the Senate in its original form and allowing debate on the spending chapter to proceed.
  • Lawmakers scrapped several government savings measures, including a planned surcharge on health insurers, an 8% employer levy on meal vouchers, and the end of a payroll exemption for apprentices.
  • New revenue was added with a targeted CSG hike on certain capital income from 9.2% to 10.6%, fresh taxes on hexane and alcoholic energy drinks, and a minimum contribution for some non‑EU long‑stay visitors using France’s health coverage.
  • The vote split parties: the Socialists backed the text, the National Rally and France Unbowed opposed it, and Les Républicains largely abstained, reflecting a fragile cross‑bench compromise.
  • The revised mix complicates the fiscal path, with the Social Security deficit now estimated around €20.6 billion for 2026 versus the government’s €17.5 billion target, setting up further bargaining in the coming days and in the Senate.