After the deputies, it is the turn of the senators to tackle the Social Security Financing Bill. There is substance, since the text presented by the government is modeled on the initial text, barely amended with a few new measures, due to lack of time for a vote in the National Assembly. Several hot topics are on the table, particularly pensions. Le president of the Republican Right group (ex-LR), Laurent Wauquiez, announced Sunday evening on TF1 having found a compromise with the government so that “all pensions”revalued listener of the “half of inflation” from January 1, with a second catch-up for the smallest six months later in terms of inflation.
A measure retained by the Senate, for whom it is the best way to “minimize the effort required of retirees”, explained Philippe Mouiller, senator and Chairman of the Social Affairs Committee. On the other hand, it removes 500 million euros in savings out of the 3.6 billion expected.
Social Security budget: deputies remove the reform of employer contributions
Another point of tension: exemptions from employer contributions. The government was targeting 5 billion euros in savings by increasing contributions on salaries around the minimum wage. The Senate closed the door on this proposal, saying it would result in “disasters in terms of employment”. An argument already put forward by all representative employers’ organizations. On the other hand, the Senate admits that exemptions from charges have exploded in recent years and proposes to lower the maximum ceiling concerned to 3.1 SMIC. Overseas territories and the agricultural sector will be spared. In total, this proposal would bring in 1 billion euros less in savings than that of the government.
7 hours of unpaid work
The senators also reported on the catastrophic situation of the autonomy branch and its accounts. For example, more than two thirds of nursing homes will be in deficit at the end of the year. An unsustainable situation to which the Senate wants to respond, which is proposing an envelope of 500 million euros in emergency funds. Added to this is a seven-hour increase in annual working hours to replace the current solidarity day. Exit the elimination of a new public holiday, this involves increasing working hours by 7 hours per year, spread out according to company agreements, and increasing the solidarity contribution rate for autonomy of employers from 0.3% to 0.6%. This new measure will bring 2.5 billion euros to the autonomy branch of Social Security.
The path to compulsory insurance to finance nursing homes
In addition, the 12-point increase in the contribution rate of the National Retirement Fund for Local Authority Agents (CNRACL) will be effective, but over 4 years instead of the 3 years initially planned, “in order to alleviate pressure on hospitals and local communities”, justified the senators.
Increase in behavioral taxes
The latest hot issue concerns so-called behavioral taxes, aimed at reducing the consumption of sugary products, tobacco and alcohol in France. The senators propose a strengthening of the “soda tax” in particular on sweetened drinks as well as an increase tobacco prices, which should bring a pack of cigarettes to 13 euros, for an additional revenue amount of 150 million euros, a measure initially rejected by the executive and the deputies. On the other hand, no tax on horse racing betting because the risk of weakening jobs and the sector is too great, declared the senators.
“I am in favor of taxes on sugars” (Geneviève Darrieussecq, Minister of Health)
Added to this is the maintenance of measures against fraud or the promotion of biosimilar drugs for a gain of 600 million euros. In total, the Senate Social Affairs Committee presents 700 million euros in additional savings to those announced by the government and leaves the Social Security deficit unchanged for 2025, which would remain at 16 billion euros.
