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Senate Opens Social Security Budget Marathon, Poised to Restore Pension Reform

The Senate’s move to roll back the Assembly’s changes collides with Assembly allies refusing the revenue bill, putting a timely 2026 budget at risk.

Overview

  • Starting Wednesday, the right–center majority in the Senate launches a week-long examination of the Social Security budget with plans to reverse the Assembly's suspension of the 64‑year pension law and to reinstate a partial freeze on pensions and benefits, sparing the AAH and pensions under €1,400.
  • The Senate’s social affairs committee adopted 135 amendments, trimming the projected 2026 social deficit from over €24 billion toward the government’s target near €17.5 billion and scrapping measures such as the CSG hike on capital.
  • The Senate approved the government’s anti‑fraud bill 239–32 and sent it to the National Assembly, with the executive touting potential revenues of more than €2 billion in 2026 and the left warning of intrusive tools and a focus on social beneficiaries.
  • At the National Assembly, even groups backing the government signaled they will not vote for the revenue section of the state budget, citing "insincerity," making a first‑reading adoption by Sunday highly unlikely.
  • With a 70‑day constitutional clock, bleak prospects for a cross‑chamber compromise raise the likelihood of fallback procedures, including a carryover of the 2025 budget or ordinances if deadlines are missed.