French Senate Revises 2026 Social Security Financing Bill to Curtail Deficit

On November 26, 2025, the French Senate adopted its version of the 2026 Social Security Financing Bill (PLFSS), significantly modifying the budgetary measures compared to the National Assembly’s earlier approval. While the Assembly had approved the revenue section but not the expenditure part, the Senate, led by a right-wing and centrist alliance, set its sights on reducing the Social Security deficit from the Assembly’s €24 billion down to about €17.6 billion.

Among the Senate’s notable revisions is the reinstatement of a €1 billion tax on health mutual insurers effective January 1, 2026, reversing the Assembly’s rejection of this levy due to concerns over insured contributions. The Senate allocated approximately €13.9 billion specifically for health insurance. However, it declined to add an extra €100 million proposed by the government to support the suspension of pension reforms.

Following the Senate’s adoption, a joint mixed commission comprising seven deputies and senators is scheduled to convene to reconcile the divergences between the two chambers’ versions. The bill’s expenditure section remains under negotiation as these deliberations continue.

This parliamentary exchange highlights the ongoing political balancing act over managing France’s social security finances, as the Senate emphasizes deficit reduction through restored taxation while forgoing additional pension reform funding.