French National Assembly Begins Contentious Debate on 2026 Social Security Budget with Pension Reform Suspension
The French National Assembly has begun debates on the 2026 Social Security budget which includes suspending the pension reform, igniting fierce political debate and controversy over budget austerity measures.
- • The 2026 Social Security budget includes the suspension of the pension reform, introduced via a government rectifying letter.
- • The suspension was promised to the Socialist Party in exchange for not censuring the government.
- • The Republicans want to lift the suspension, while Socialists seek to add long career provisions.
- • The suspension costs are estimated at €100 million in 2026 and €1.4 billion in 2027, with controversial funding options proposed.
- • The budget features strict austerity, freezing pensions and social benefits, provoking intense debate.
Key details
The French National Assembly commenced discussions on the 2026 Social Security budget on October 27, 2025, a budget notably incorporating the suspension of the highly debated pension reform. This suspension was introduced into the budget text through a government-submitted "rectifying letter," as reported by Le Monde, a move promised to the Socialist Party (PS) in exchange for their agreement not to censure the government.
The debate is unfolding amid intense political tensions, with the Prime Minister Sébastien Lecornu facing substantial pressure due to the budget's strict austerity measures. This stringent approach aims to contain social security spending increases to just 1.6%, significantly lower than the natural annual growth rate of approximately 4%, largely driven by an aging population (France 24).
The Republicans plan to advocate for lifting the suspension of the pension reform, while the Socialists aim to integrate provisions concerning long careers into the reform. Should the National Assembly endorse the suspension, the right- and centrist-controlled Senate is expected to reinstate the pension reform, as indicated by Senate President Gérard Larcher (Le Figaro).
Financially, the suspension comes with significant costs, estimated at €100 million for 2026 and soaring to €1.4 billion in 2027. To offset these expenses, controversial funding measures are proposed, including contributions from health insurance supplements and retirees. The government’s budget project also intends to generate €7 billion in health savings, which may entail increased copayments, reduced dental reimbursements, and limitations on sick leave durations—moves opposed by patient advocacy groups such as France Assos Santé, who describe the plan as "deeply unjust and ineffective."
The budget further plans to freeze all social benefits and pensions in 2026 to save €3.6 billion, a measure likely to spark fierce parliamentary debate (Le Figaro). The combination of suspension of the pension reform and ambitious savings targets paints a challenging landscape for the Social Security budget’s acceptance amid the polarized political climate.
As the Assembly deliberates, the atmosphere remains charged, reflecting divergent political priorities and the pressing fiscal constraints shaping France's social welfare policies in the coming year.