France’s National Assembly rejected an adjustment to employer contribution relief on Oct. 22, blocking a measure the government projected would save €3.7 billion in 2027.
The Assembly first voted 101–68 to remove the employer-relief change from Article 7, then rejected the amended article in first reading by 128 votes to 34, the Assembly record shows. The vote does not settle the bill’s final outcome.
The provision would have counted profit-sharing and incentive payments when calculating employers’ contribution reductions. That change would have narrowed relief for some companies, increasing their payments to the social security system.
The government’s 2027 social security financing bill projects the deficit of France’s basic mandatory social security schemes will decline to €12.7 billion in 2027 from €21.8 billion in 2026. Labor Minister Jean-Pierre Farandou told lawmakers the proposed changes had effects worth billions. Socialist lawmaker Jérôme Guedj criticized colleagues for rejecting revenue tied to the deficit-reduction plan, while opponents argued the measure would increase company costs, according to the Assembly record.
Separately, debate on the state budget’s revenue section was postponed. EconoTimes previously reported that debate was scheduled to resume Oct. 27 in its coverage of the budget debate.
