French Social Security Financing Bill Passes Lower House Despite Opposition
The French Social Security Financing Bill (PLFSS), which led to the resignation of former Health Minister Michel Barnier in December, was adopted by the lower house of parliament on Wednesday. The bill was passed after lawmakers rejected a third motion of censure, making it the fourth such motion on budget bills and the fifth overall for Prime Minister François Bayrou.
The bill then passed smoothly through the Social Affairs Committee of the Senate on Thursday, indicating likely approval in that house, which supports the government. However, the committee’s general rapporteur warned of a "hefty deficit." If the bill is amended, it will need to return to the lower house, where it is likely to face a final 49.3 motion.
"We voted for a favorable opinion in order not to put a record back on the jukebox and because hospital and nursing home directors need visibility," centrist Senate general rapporteur Élisabeth Doineau told AFP.
The social security deficit is expected to reach €22.1 billion in 2025, higher than the €16 billion initially projected by Michel Barnier in the first draft of the PLFSS. Parliamentary sources are concerned that the actual deficit could increase significantly by the end of the year.
Last Wednesday, general rapporteur Thibault Bazin (LR) emphasized to the government the "imperative" of controlling this deficit. After facing censure and concessions to both opposition and majority parties, the PLFSS provides for a 3.4% increase in health insurance spending, compared to the 2.8% initially planned. This is partly because the government increased the hospital budget by €1 billion during negotiations with the Socialist Party.
The government was forced to abandon a plan to increase co-payments (patient expenses remaining after health insurance reimbursement), agreed to reduce demands on businesses for social security contribution exemptions, and withdrew a proposal to de-index pensions from inflation.
A Senate-approved idea to introduce seven additional unpaid working hours per year also did not come to fruition. However, the text submitted for this final vote retains many contributions from the Senate, the only house that fully examined it in the autumn.
"This budget is not satisfactory, let’s not hide it. But every day that passes without a budget increases the bill in millions: we need to pass it as soon as possible," LR senator Corinne Imbert, rapporteur for the health branch, admitted to AFP.
Background on the PLFSS
The PLFSS is a yearly bill that outlines funding for France’s social security system, which covers healthcare, retirement, and other benefits. The bill is typically controversial, as it involves difficult decisions about spending and taxation.
In 2022, the PLFSS faced particular challenges due to the COVID-19 pandemic, which put a strain on healthcare spending. The government had initially proposed a deficit of €16 billion for 2025, but this was increased to €22.1 billion after negotiations with the Senate.
Reactions to the Passage of the PLFSS
The passage of the PLFSS was welcomed by the government, which had been facing increasing pressure to approve a budget. However, opposition parties criticized the bill, arguing that it did not do enough to address the healthcare system’s challenges.
Impact of the PLFSS
The PLFSS will have a significant impact on the French healthcare system. The bill includes measures to increase spending on hospitals, reduce co-payments for patients, and de-index pensions from inflation. These measures are likely to improve access to healthcare and reduce costs for individuals.
However, the PLFSS also includes some controversial measures, such as the increase in the deficit and the reduction in social security contribution exemptions for businesses. These measures are likely to raise concerns among some voters and businesses.
Conclusion
The passage of the PLFSS is a significant victory for the French government, but it is likely to remain controversial. The bill includes measures to improve the healthcare system, but it also includes some unpopular measures that are likely to face opposition.
