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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How does President Larcher view the potential impact of the proposed €15 billion savings on vulnerable populations?
**Interview with Gérard Larcher, President of the Senate**
**Interviewer:** Thank you for joining us today, President Larcher. The Senate has commenced its debates on the Social Security budget following an unprecedented situation in the National Assembly. What are your thoughts on this unusual process?
**Gérard Larcher:** Thank you for having me. Yes, it is indeed an unusual situation. The inability of the National Assembly to conclude discussions has placed the Senate in a pivotal role. We are taking our responsibilities seriously to ensure a thorough examination of the Social Security financing bill.
**Interviewer:** Given the government’s proposal for €15 billion in savings, do you believe there will be enough support within the Senate to implement these cuts?
**Gérard Larcher:** There is a clear majority in the Senate, particularly among Republicans and their centrist allies, to support necessary reforms. However, we need to strike a balance between fiscal responsibility and the well-being of our citizens. It’s about showing courage to make proposals that align with our current challenges.
**Interviewer:** With over 800 amendments tabled, how do you plan to manage discussions efficiently while ensuring thorough scrutiny of these proposals?
**Gérard Larcher:** It will certainly be a challenge, but we are committed to addressing each amendment appropriately. Our goal is to extend the debates throughout the week without rushing the process. Each amendment has the potential to bring valuable insights, and we must remain open to discussion.
**Interviewer:** There appears to be a divide between the government and the left regarding the characterization of the budget as “austerity.” How do you view this divide?
**Gérard Larcher:** It’s important to listen to all perspectives. We understand the concerns raised by the left, but we must also consider the economic realities we face. The proposed measures are designed to ensure the sustainability of our Social Security system while attempting to minimize the impact on vulnerable populations.
**Interviewer:** Lastly, what do you hope will be the outcome of this Senate debate?
**Gérard Larcher:** Ultimately, I hope that we can reach a consensus that not only reflects fiscal prudence but also enhances the social safety nets that our citizens rely on. A strong, sustainable Social Security system is crucial for our society, and we are determined to work towards that goal.
**Interviewer:** Thank you, President Larcher, for your insights on this important issue.
**Gérard Larcher:** Thank you for having me.
