2024-11-04 21:49:00
Drama at the Palais Bourbon: the National Assembly approved, Monday November 4, with the votes of the left, a profoundly revised version of the “revenue” part of the 2025 Social Security budget, the Macronist and right-wing deputies having voted against.
The amended text, which notably provides for 17 to 20 billion additional contributions according to the deputies, was adopted at first reading with 126 votes “for” and 98 “against”.
“Amazing !” the group La France insoumise (LFI) welcomed in a press release, seeing in this vote the “new failure of Emmanuel Macron and Michel Barnier”.
The National Rally, which said it was fundamentally opposed to the government’s copy as well as to the “fiscal nonsense” imposed by the left, abstained so as not to put a premature end to the debates. The rejection of the “revenue” part would in fact have led to the rejection of the entire text.
The approval of the “revenue” part comes as a surprise, especially since this part of the text – which concerns some 600 billion euros – had previously been unanimously rejected in the Social Affairs Committee.
By notably increasing contributions on capital income or dividends, “the left of this chamber has found majorities to fill the Social Security coffers, while the right has deployed all its efforts to empty them”, commented the rebellious Élise Leboucher.
“Collusion du populisme”
She was referring to the revolt of elected officials from the right and the center who last week rejected the increase in employer contributions, to the tune of four billion euros, wanted by the government coalition that they are nevertheless supposed to support.
The left has “rejected the 15 billion euros in wild and unjust cuts” requested by the government, to replace them with 20 billion “in contributions, contributions and taxes, only on the big fortunes, high salaries, private creditors and delinquent multinationals”, welcomed the LFI group in a press release.
Among the new recipes, deputies approved on Monday a reform of the “soda tax”, intended to limit the quantity of sugars in this type of drink.
Also readIn the National Assembly, a phantom majority to support the Barnier government
On the side of the government coalition, the deputies took turns to castigate a text “emptied of its meaning and of any seriousness, political and budgetary”, as summarized by François Gernigon (Horizons). The new taxes and contributions do not target the “rich people”, but “the working middle classes”, lamented Thibault Bazin (LR).
After the vote, the president of the MoDem group Marc Fesneau expressed his annoyance: “When you have RN and NFP voting together, you can see that it is the collusion of populism.” “In the end, the government will say ‘see, all this is not reasonable, we will leave it to the Senate because they are responsible and reasonable people’,” he added.
Final sprint before passing the Senate
A little earlier, the left had also obtained a symbolic victory on the flammable subject of pension reform, by having amendments adopted which modify an appendix of the text by repealing the increase in the legal retirement age from 62 to 64 years old.
These votes, however, are not definitive, as the PLFSS is only just beginning its parliamentary journey and because of the probable use by the government of article 49.3 which will allow it to retain the amendments of its choice in the final text.
In the meantime, the deputies were able to continue their work by beginning in the evening the examination of the “expenses” part of the text. They notably decided that Covid tests can no longer be reimbursed without a medical prescription, and removed a system proposed by the government aimed at making the reimbursement of certain procedures, medications or medical transport subject to a document established by the health professional establishing the “reasonableness” of the prescription.
Due to the deadlines set by the Constitution – the examination of the Social Security financing bill (PLFSS) must be completed no later than midnight on the night of Tuesday to Wednesday – they are however not sure of to complete this project, while 530 amendments remained to be examined at the close of the debates late Monday evening.
PS deputy Jérôme Guedj said he was ready to withdraw amendments, and asked the government to “reverse” by Tuesday afternoon the order of the articles examined, so that the most controversial points of the bill , and in particular that relating to the freezing of retirement pensions, be examined as a priority.
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**Interview with Political Analyst Dr. Claire Dupont on France’s Revised 2025 Social Security Budget**
**Interviewer:** Good evening, Dr. Dupont. Thank you for joining us to discuss the recent developments in the French National Assembly regarding the 2025 Social Security budget.
**Dr. Dupont:** Good evening! It’s a pleasure to be here.
**Interviewer:** The National Assembly has approved a revised version of the “revenue” part of the Social Security budget, with significant contributions proposed. What does this mean for the government’s fiscal strategy under Prime Minister Barnier?
**Dr. Dupont:** This approval is quite significant. The government aims to raise additional contributions, estimating between 17 to 20 billion euros. It shows a shift in the balance of power within the Assembly, where the left managed to secure enough votes to adopt a robust fiscal measure despite opposition from Macronist and right-wing deputies. This could indicate a more cooperative approach among left-leaning parties to counteract austerity measures.
**Interviewer:** The left has positioned this vote as a ‘failure’ for Prime Minister Macron and Mr. Barnier. What challenges does this pose for the current government coalition?
**Dr. Dupont:** Indeed, the left’s ability to unite against the government’s proposals is a challenge for Barnier, especially following the initial rejection in the Social Affairs Committee. This showcases the growing discontent among some factions about the perceived austerity measures. The government will need to navigate a delicate political landscape to enact its budget plans while managing dissent not just from the oppositions but also from within its own coalition.
**Interviewer:** The National Rally abstained from voting, which was somewhat unexpected. What does that indicate about their strategy moving forward?
**Dr. Dupont:** The National Rally’s abstention can be seen as a tactical move; they sought to remain involved in the discussions without outright rejecting the government’s proposals. It indicates a desire to influence the debate while keeping their options open for future votes. This strategy allows them to critique the government without fully aligning with the left, maintaining their position as a significant opposition force.
**Interviewer:** There was also mention of a reform regarding the “soda tax.” How does introducing new taxes like this fit into the broader fiscal narrative of the budget?
**Dr. Dupont:** The introduction of new taxes like the soda tax is part of a broader strategy to increase revenue without directly taxing the middle class more heavily, which has been a point of contention. The left believes that targeting sugary drinks is a way to promote public health while generating funds for Social Security. However, the criticism from the government coalition suggests that they feel this approach detracts from addressing the bigger issues concerning wealth distribution.
**Interviewer:** Looking ahead, what do you think are the implications of these discussions for France’s financial future, especially with potential Senate reviews coming up?
**Dr. Dupont:** The implications are significant. If the government can’t find a consensus within the Assembly and the Senate, we may see more drastic measures such as invoking article 49.3 to push through key parts of the budget. The ongoing debates reflect deep divisions within French politics, which will ultimately affect social services and economic stability. The government needs to present a united front to reassure citizens and markets as it grapples with rising costs and demands for social equity.
**Interviewer:** Thank you, Dr. Dupont, for your insights on this critical issue. We’ll be sure to follow the developments closely.
**Dr. Dupont:** Thank you for having me!