French Senate Revises Social Security Budget Amid Pension Reform Suspension; Government Prepares Special Law for 2026 Budget Contingency

The French Senate has embarked on intense deliberations to revise the 2026 Social Security financing bill, including a significant amendment suspending the government’s pension reform. These debates began at the Palais du Luxembourg and have been marked by vigorous exchanges among senators, particularly those from the right-wing majority, who are poised to significantly alter the National Assembly’s earlier amendments.

Public Accounts Minister Amélie de Montchalin opened the session by expressing confidence in a responsible majority within Parliament, especially the Senate, to seek a compromise and resolve the current political instability. The Senate’s plenary vote is scheduled for November 25, with the Assembly having previously faced time constraints that prevented examination of the full text. Over 300 amendments remain under consideration.

Concurrently, the government is preparing a contingency plan for the 2026 budget process. Laurent Panifous, Minister for Relations with Parliament, announced during the Senate session on November 20 that if Parliament fails to finalize the budget by December 31, the government will propose a special law rather than resort to the use of ordinances, which have never been employed under the Fifth Republic. This special law would enable the state to continue collecting existing taxes and freeze expenditures, ensuring fiscal continuity amid political deadlock.

The timeline for completing the budget is tight. The Senate has indicated it cannot conduct a formal vote before December 15, limiting opportunities for compromise or a new reading in the Assembly. This raises concerns given ongoing disagreements and the difficulty in securing a parliamentary majority for the budget.

Prime Minister Sébastien Lecornu has previously underscored the importance of parliamentary responsibility, aligning with the government's approach to abandon the expedited 49.3 procedure in favor of thorough legislative debate. The government remains committed to achieving an approved budget but is preparing for all scenarios to maintain fiscal stability heading into 2026.