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French Assembly Narrowly Backs Social Security Revenues After Diluted Capital-Income CSG Deal

The revenue vote clears the way for spending decisions, including the Assembly’s move to reinstate a pause on the 2023 pension reform.

Overview

  • The revenue section passed 166–140 with 32 abstentions, supported by Renaissance, MoDem, the Socialists and LIOT, opposed by RN, LFI and Greens, with LR and Horizons mostly abstaining.
  • Turnout was unusually low for a pivotal vote, with 239 of 577 deputies not taking part, underscoring fragile support ahead of the final ballot on Tuesday, December 9.
  • To secure votes, the government revived a scaled‑back CSG increase on capital income yielding about €1.5 billion instead of €2.8 billion and dropped plans to double medical co‑pays, while signaling a higher health‑spending target.
  • Following the revenue vote, deputies rejected a freeze on pensions and social minima and restored the suspension of the 2023 pension reform (162–75).
  • Prime Minister Sébastien Lecornu warned a failure to pass the PLFSS could push the 2026 Social Security deficit to €29–30 billion and has ruled out using Article 49.3, leaving the outcome of Tuesday’s vote uncertain.