National Assembly Rejects Cap on 10% Pension Abatement

Overview

• The Assembly voted to delete the government’s Article 3 by 116 votes to 30 on Thursday, October 15, defeating the proposal to cut the ceiling of the long‑standing 10% pension abatement from about €4,439 to €3,000.
• The measure would have increased income tax for retirees whose 10% abatement exceeded the new ceiling and was estimated to yield roughly €1.4 billion for 2027.
• The abatement change was one piece of a broader package that the government said aimed to recover about €5 billion from retirees, including measures in the social security budget.
• Large street mobilizations — over 10,000 retirees in some 80 departments called by the CGT — and cross‑party opposition from the left and RN combined with absenteeism and thousands of amendments to block the plan.
• Fiscal watchdogs such as the CPO and Cour des comptes argue the 10% abatement costs more than €5 billion a year and benefits higher‑income households, but the parliamentary setback leaves the budget process stretched and possible compromises to be negotiated later in the marathon review.