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 the Senate plan to ensure a balance between necessary budget savings and the welfare of citizens amid concerns of austerity?
**Interview with Gérard Larcher, President of the Senate**
**Interviewer**: Thank you for joining us, President Larcher. As we understand it, the Senate is now examining the Social Security financing bill after the National Assembly’s inability to conclude on time. Can you explain how this unusual situation affects the legislative process?
**Gérard Larcher**: Thank you for having me. Yes, this situation is indeed unprecedented under the Fifth Republic. The National Assembly was unable to vote on the text, which has now fallen to the Senate to take over. This change means we’re operating under the government’s original proposal. It places us in a unique position as we move forward with our discussions.
**Interviewer**: There are over 800 amendments on the table. How does the Senate plan to manage such an extensive list while still adhering to a timeline?
**Gérard Larcher**: Managing that many amendments is undoubtedly a challenge. However, we’re committed to thorough scrutiny, and our discussions will continue through to Friday or Saturday. The rejection of the two prior motions shows a clear signal of support, but we must also carefully evaluate the amendments to ensure we reach a responsible and effective decision.
**Interviewer**: The Prime Minister has mentioned seeking €15 billion in savings from the Social Security budget. How do you assess the Senate’s support for these measures?
**Gérard Larcher**: While the call for savings is significant, we also need to balance fiscal responsibility with social equity. There’s a majority in the Senate that aligns with the government’s objectives, but the challenge will be to implement these savings without harming those who rely on Social Security. The rapporteur, Elisabeth Doineau, emphasized the need for courage, and I believe that sentiment resonates here.
**Interviewer**: The left has labeled this budget an “austerity budget.” What’s your response to those concerns?
**Gérard Larcher**: I understand the apprehension surrounding austerity measures, but we must face the economic realities. We’re attempting to strike a balance between necessary savings and protecting essential services. The proposed increase in pensions, which aligns with inflation, demonstrates our commitment to safeguarding citizens’ welfare even amidst cuts. Listening to different perspectives is vital, and we will continue to weigh the implications of our decisions carefully.
**Interviewer**: Lastly, what is your hope for the outcome of this budget examination?
**Gérard Larcher**: I hope we can produce a fair and sustainable budget that addresses the challenges ahead. Engaging in this process transparently is crucial for restoring public trust in our institutions. Ultimately, it’s about ensuring the well-being of our citizens while managing the state’s finances responsibly.
**Interviewer**: Thank you, President Larcher, for sharing your insights with us.
**Gérard Larcher**: Thank you. It’s been a pleasure.
