Budget 2025: the government defeated by its own deputies on employer contributions

Budget 2025: the government defeated by its own deputies on employer contributions
Budget 2025: the government defeated by its own deputies on employer contributions

The Macronist and right-wing deputies, accompanied by those of the RN, voted, Wednesday October 30, to delete an article on the Social Security budget, going against the opinion of the executive.

They together rejected the overhaul of employer contributions wanted by the Prime Minister, Michel Barnier, and supposed to bring in 4 billion euros.

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It is a budgetary snub which illustrates the electrical context within the National Assembly. In a hemicycle with a reversed front, the National Rally as well as the troops of Gabriel Attal and Laurent Wauquiez rejected, Wednesday October 30, an overhaul of employer contributions supposed to bring in 4 billion euros, which the executive now hopes to re-discuss in the Senate.

It was a close call: with 170 votes to 162, the government camp inflicted a defeat… on the government. A remarkable setback, on article 6, a key article of the Social Security budget for 2025, which aimed to limit and distribute differently the reductions in employer contributions.

Rebelote at the beginning of the evening, on another article specifically aimed at apprenticeships and start-ups. Here too, the Assembly rejected the increases in contributions wanted by the government, thanks to the votes of the RN and part of the government camp, more divided this time.

These are not savings (…) they are an increase in labor costs

Gérald Darmanin, EPR deputy for the North

Michel Barnier's government has touched a nerve by attacking exemptions from employer contributions, the amount of which has doubled in ten years and is now close to 80 billion euros. These aids “are becoming too expensive”underlined the Minister of Labor, Astrid Panosyan-Bouvet, to justify reviewing the scale, on the basis of several recent reports. “It’s not a step backwards, it’s a slowdown”pleaded his colleague at the Ministry of the Budget, Laurent Saint-Martin, even proposing to “discuss” of the expected gain of 4 billion euros.

Insufficient to convince almost hostile Macronists, like Gérald Darmanin questioning the tenant of Bercy. “Don’t hide behind your little finger, these are not savings”he said. “We are not here to increase taxes on businesses.” “It is neither a reform nor a saving, it is an increase in the cost of labor”insisted the Macronist deputy Mathieu Lefèvre, calling instead for a “reduction of expenses” via in particular “unemployment insurance reform”. The Republican Right group also opposed the measure, behind its leader Laurent Wauquiez, for whom “the reduction of costs benefits work”.

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The RN has finished tipping the scales, its spokesperson Laure Lavalette denouncing a “relentless attack on small businesses”. Only the centrists of the MoDem did not vote to delete this article, in the hope of presenting “another device” against the “low wage traps”explained Philippe Vigier, deputy for Eure-et-Loir. In vain.

The left emphasizes the “splendid isolation of the Barnier government”

The result of the vote demonstrates the “splendid isolation of the Barnier government”commented the socialist Jérôme Guedj, who like the left-wing deputies found himself defending the executive to undermine the “untouchable dogma” exemptions. A “waste” in the form of “gifts to employers”added the rebellious Hadrien Clouet, describing his adversaries as “authorized representatives of Medef”. Just like the ecologist Clémentine Autain pointing a straight line “not on the side of labor, but definitely on the side of capital”.

Regardless, the message got through: the two ministers repeatedly said “ready for openings” on the subject during the parliamentary “shuttle”. Or the examination of the text in the Senate, from mid-November. Negotiations have already started to “that another balance be found, while respecting the budgetary trajectory”indicates a ministerial source, referring to “other sources of savings” which would allow “do not increase labor costs”.


YR with AFP

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