French Senate Approves Nearly €1 Billion Cuts to Social Policies Amid Financial Strain

The French Senate has approved a €1 billion cut to social policy funding amid rising deficits and economic pressures, sparking debate on balancing solidarity with fiscal responsibility.

    Key details

  • • Senate reduces social policy budget by nearly €1 billion to €29.5 billion, a 2.7% cut.
  • • Three-quarters of budget allocated to activity bonus and Allocation for Adults with Disabilities (AAH).
  • • Article 79 excluding AAH from professional income was removed, protecting disabled workers' benefits.
  • • Social security projected to face a €25 billion deficit in 2025, with rising retirement fund deficits.
  • • Social protection spending is 32.3% of France's GDP, higher than EU average, sparking competitiveness concerns.

On December 6, 2025, the French Senate approved a revised budget for the mission "Solidarity, Insertion, and Equal Opportunities," reducing its funding by nearly €1 billion to a total of €29.5 billion. This represents a 2.7% decrease and marks the first cut in social policy credits since 2017. Approximately three-quarters of this budget are allocated to the activity bonus (prime d'activité) and the Allocation for Adults with Disabilities (AAH).

Left-wing opposition senators attempted but failed to secure increased funding for social protection programs, facing resistance due to public finance constraints underscored by the special rapporteur for the Finance Committee, Senator Arnaud Bazin. Bazin emphasized the committee’s inability to support amendments for additional spending given fiscal pressures.

Critics, notably Communist Senator Silvana Silvani, condemned the budget cuts, arguing that poverty in France has reached levels unseen in 30 years and accusing the government of shifting the crisis burden onto the most vulnerable. Conversely, Senator Marie-Do Aeschlimann defended the budget as a necessary balance between solidarity and responsible public spending.

A key development during the Senate’s discussions was the removal of Article 79, which would have excluded the AAH benefit from being counted as professional income. This article’s deletion was widely praised, as it would have affected 87% of disabled workers with a potential loss of €170 per month. Senator Bazin criticized the initial proposal for contradicting the goal of supporting disabled workers.

The broader context reveals mounting financial challenges in France’s social protection system. According to economic analyses, social security is projected to face a €25 billion deficit in 2025, primarily driven by health insurance. Retirement funds are also expected to enter a deficit of €7 billion this year, potentially rising to €15 billion by 2035 and €35 billion by 2045 if benefits are unchanged. Social protection spending stood at 32.3% of GDP in 2023, significantly exceeding the EU average of 26.5%, prompting concerns over the country's economic competitiveness.

These financial constraints underscore the difficult choices facing the French government as it seeks to reconcile social generosity with fiscal sustainability. The Senate’s budget decision reflects an attempt to contain expenditures while maintaining key social supports, though the debate is sure to continue amid ongoing economic pressures and public demand for social protections.

This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.

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