French National Assembly Approaches Crucial Vote on Social Security Budget Amid CSG Compromise

On December 5, 2025, the French National Assembly is set for a decisive vote on the Social Security budget, following intense negotiations that produced a compromise on the contentious increase of the Generalized Social Contribution (CSG) on capital income. Initially adopted in the Assembly but later removed by the Senate, the CSG hike became the focal point of fierce debates that revealed deep divisions across the political spectrum.

The government, led by Prime Minister Sébastien Lecornu, sought to protect the middle class while securing Social Security revenues, proposing an amendment that reduces expected income from 2.8 billion euros to 1.5 billion euros. This amendment passed with 177 votes in favor despite opposition criticism that it unfairly burdens lower-income groups. Lecornu stressed the urgency of passing the budget, warning that failure would lead to a Social Security deficit of 29 to 30 billion euros next year, exceeding the government's target of approximately 20 billion euros.

Highlighting the gravity of the situation, Lecornu and Public Accounts Minister Amélie de Montchalin devoted December 4 to discussions in the Assembly, calling the moment "fundamental, delicate, and potentially critical." The debates exposed tensions between the left, which calls for increased social security funding, and segments of the right opposing the CSG measure.

The final vote on the entire Social Security budget is scheduled for December 9, with the potential rejection posing significant risks to approving the budget before year-end deadlines.