New Legislation to Combat Social Fraud Launched by Catherine Vautrin
Catherine Vautrin announces a new law to combat social fraud in France, including stringent measures and financial penalties.
Key Points
- • Catherine Vautrin introduces legislation against social fraud with an estimated cost of €13 billion annually.
- • The law allows access to beneficiaries' assets to verify income declarations.
- • Fraudulent individuals face mandatory reimbursement and potential account debiting.
- • Unemployment benefits will be restricted to accounts in France or the EU.
Catherine Vautrin, France's Minister of Labor, Health, Solidarity, and Families, has unveiled a comprehensive legislative initiative aimed at addressing the pressing issue of social fraud, which the government estimates costs approximately €13 billion annually. The proposed law is scheduled for debate in Parliament during the second half of 2025.
Key elements of the initiative include empowering social security agencies to conduct thorough asset checks on beneficiaries, ensuring that income declarations are accurately reported. Should cases of fraud be discovered, individuals will be required to fully reimburse any funds improperly received. An unorthodox provision also allows for the direct debiting of bank accounts belonging to offenders to recover the owed amounts.
To bolster accountability in service billing, transporters providing medical services will be mandated to utilize geolocation tracking and electronic billing systems, thus enhancing the integrity of service invoicing. Moreover, in a significant policy shift, unemployment benefits will now only be payable into bank accounts within France or the EU, tightening controls over benefit recipients.
In a notable effort to penalize those profiting from illicit activities, the law proposes a steep increase in tax rates for traffickers' illicit income, with a suggested rate of 45%. This measure aims to greatly expand the government’s revenue recovery efforts from illegal operations. Vautrin emphasized that these legislative measures are crucial to safeguarding the welfare system, reinforcing the notion that social fraud undermines the contributions of law-abiding citizens, which ultimately supports the community's social model.