French Government Suspends 2025 Pension Reform to Avoid Political Censure Amid Social Security Deficit Challenges
France suspends the contentious 2025 pension reform amid political pressure and aims to reduce a massive social security deficit through benefit freezes and wage growth, while artists grapple with a retirement contribution scandal.
- • Sébastien Lecornu announced suspension of 2025 pension reform to avoid Socialist Party censure.
- • Social Security deficit expected to decrease from €23 billion in 2025 to €17.5 billion in 2026 due to pension freezes and wage growth.
- • Health branch finances face a €12.5 billion deficit, aging branch €3.1 billion in 2026 projections.
- • Artists remain agitated over failure to collect retirement contributions, impacting retirement rights.
Key details
On October 14, 2025, Sébastien Lecornu, the French Minister for the Overseas and spokesman of the government, announced the suspension of the contentious 2025 pension reform during his declaration of political generality. This move aims to prevent a censure motion from the Socialist Party and to navigate the long-standing political tensions this reform has stirred within the executive for over two years. The announcement has compelled several government ministers to reconsider and potentially reverse their prior positions on the reform, reflecting the complex political landscape the government faces in balancing social demands and fiscal sustainability.
This suspension coincides with ongoing efforts by the French government to address the substantial deficit in the Social Security system. According to the 2026 Social Security financing bill, the deficit is forecasted to decrease from a record €23 billion in 2025 to €17.5 billion in 2026. This reduction is primarily attributed to a freeze on pensions and social benefits combined with an expected 2.3% growth in the private sector wage bill, which increases contributions and bolsters social solidarity funding. The health branch remains the largest deficit contributor, projected at €12.5 billion, while the aging branch, which supports pensions, is expected to have a €3.1 billion deficit.
Amid these broader issues, the scandal involving artists’ social security contributions continues to fuel public discontent. Authors and artists like Joseph, a children's literature author, remain aggrieved over past failures by Agessa (now rebranded 2S2A) to collect retirement contributions properly. Revealed in 2019, this failure has left many artists without the necessary quarters for retirement benefits, intensifying criticism as government budget decisions loom.
The suspension of the pension reform reflects the government’s delicate balancing act between political pressures and financial realities. Ministers, some of whom previously supported the reform, must now reconcile these changes with their constituencies and ongoing social security funding challenges.