2024-11-18 19:33:00
The President of the Senate, Gérard Larcher (top), and the Minister of the Budget, Laurent Saint-Martin (bottom), at the opening of the debates on the Social Security budget, in the Senate, November 18, 2024. BERTRAND GUAY / AFP
After the examination of the Social Security financing bill in the National Assembly, where the deputies had not reached the end within the set deadlines, an unprecedented situation under the Fifth Republic, the Senate began the examination of the text, Monday November 19.
Due to the absence of a vote on the text at the Palais Bourbon, it is the government’s initial text which is discussed by the senators. While more than 800 amendments have been tabled, the examination of the PLFSS will extend until Friday or Saturday. First positive signal for the government in a Senate: two motions for prior rejection of the text were rejected, each receiving less than 100 votes out of 348.
The Prime Minister, Michel Barnier, seeking 15 billion euros in savings on the Social Security budget, in theory has clear support in the Senate, dominated by the Republicans and their centrist allies. “We must be careful and show courage. It will certainly be painful, but the worst would be not having the will and the courage to make proposals that match the challenges”assured Elisabeth Doineau, the rapporteur (UDI) of the text in the Senate.
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Several measures are in fact under debate, such as the reduction of employer contributions or the postponement of the indexation of pensions to inflation. On this first issue, the government is proposing to limit and distribute these exemptions differently, particularly for salaries at the minimum wage level. The executive, which initially wanted to withdraw 4 billion euros from this measure, finally proposed on Sunday to halve the requested effort, to 2 billion euros. The Senate, for its part, proposed in committee an intermediate route, estimated at 3 billion euros, which would involve a rebalancing in favor of reductions on salaries close to the minimum wage.
The left denounces “an austerity budget”
On pensions, the subject has almost been settled by an agreement between the right and the government to increase all pensions by half of inflation on January 1, before a supplement for the smallest pensions on July 1.
The device, supposed to bring in around 3.5 billion euros, still needs to be adopted in public session, where the left will denounce a “scam”. “The government without a majority in the Assembly can count on its supporters here to do the dirty work”regretted Monday senator (PCF) Cathy Apourceau-Poly, who castigated “an austerity budget in which two thirds of the savings are based on those with social insurance”.
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The debates in the Senate will also put back on the table the criticized proposal to create a second day of solidarity for the benefit of the elderly in the form of a package of seven “solidarity hours” annual – a measure to which the President of the Senate, Gérard Larcher (LR), gave his support –, and more broadly the question of working time, a strong marker of the right. On prevention, senators should agree on an increase in taxation on sugary drinks, tobacco and gambling. And discussions promise to be lively on learning aid or work stoppages. Will the final text remain compatible with the government project? The solemn vote scheduled for November 26 will in any case say a lot about the unity of the Barnier camp.
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What are the potential implications of the proposed 15 billion euros in savings on social services in France?
**Interview with Gérard Larcher, President of the Senate**
**Interviewer:** Good evening, Mr. Larcher. Thank you for joining us. As the Senate begins its examination of the Social Security financing bill, can you provide insights into the challenges you foresee in this process?
**Gérard Larcher:** Good evening, and thank you for having me. The situation is indeed unprecedented, as we’ve never encountered legislative delays like those experienced in the National Assembly. This has put us in a unique position, but we are committed to ensuring a thorough and responsible examination. The goal is to address the pressing budgetary needs while balancing the welfare of our citizens.
**Interviewer:** With over 800 amendments proposed, how do you plan to manage the discussions effectively?
**Gérard Larcher:** It is going to require careful management. We are dedicated to focusing on the most critical amendments that reflect our shared objectives. The key is to maintain a constructive dialogue while ensuring we respect the time constraints we face. Our priority remains the well-being of our social security system and the citizens it supports.
**Interviewer:** The Prime Minister has indicated a goal of 15 billion euros in savings on the Social Security budget. How do you assess the level of support for these measures within the Senate?
**Gérard Larcher:** The Senate, predominantly composed of Republicans and our centrist allies, recognizes the need for these savings. However, there is always a careful balancing act between fiscal responsibility and the potential impact on social services. We must exhibit both courage and caution as we navigate these waters.
**Interviewer:** The left is labeling this budget as “an austerity budget.” What is your response to these criticisms?
**Gérard Larcher:** It’s essential to differentiate between necessary reforms and austerity. Our intentions are not to impose hardship but to ensure sustainability and efficiency within our social security system. It is crucial that we demonstrate responsibility while also safeguarding essential services for the most vulnerable members of our society.
**Interviewer:** Lastly, what are the next steps in this legislative process?
**Gérard Larcher:** Following today’s discussions, we will continue our examination with a focus on key articles of the bill. Our goal is to navigate through the proposed amendments and reach a consensus that will allow us to vote on the final text by the end of the week. The priorities remain clear: fiscal prudence, social equity, and the long-term stability of our social security system.
**Interviewer:** Thank you, Mr. Larcher, for your insights. We appreciate your time.
**Gérard Larcher:** Thank you. It’s my pleasure.