French Parliament Narrowly Approves 2026 Social Security Budget Amidst Political Tensions

Lecornu's Government Secures Provisional Victory on Social Security Budget

Paris, France – French Prime Minister Sébastien Lecornu achieved a crucial, albeit narrow, victory on Tuesday, December 9, 2025, as the National Assembly approved the 2026 social security budget. The vote, a significant test for Lecornu's minority government, passed with 247 votes in favor, 234 against, and 93 abstentions. This outcome marks a provisional success for the Prime Minister, who has been navigating a fragmented legislature since his appointment.

The approval of the Social Security Financing Bill (PLFSS) is vital, as social security accounts for over 40% of France's public sector spending, covering essential services such as healthcare, pensions, and welfare. The government had warned that a rejection could trigger a 'political, economic and social crisis' and lead to a significant budget shortfall.

Key Concessions and Budgetary Details

To secure the necessary votes, particularly from the Socialist Party, Prime Minister Lecornu made substantial concessions. The most notable was the agreement to suspend President Emmanuel Macron's 2023 pension reform, which had aimed to raise the retirement age from 62 to 64. This suspension will remain in effect until after the 2027 presidential election. This particular concession is estimated to cost €300 million in 2026.

The approved budget includes several key provisions:

• A 3% increase in health insurance expenditure.
• An allocation of €850 million for hospitals.
• €150 million dedicated to combating medical diseases.
• Additional funding for nursing homes and overseas territories.

To finance these measures, the government plans a hike in the social contribution (CSG) on capital income, increasing it from 9.2% to 10.6%. Furthermore, an additional €4.5 billion will be transferred from the state budget to the social security budget.

Persistent Deficit and Political Landscape

Despite these efforts, the social security deficit is projected to reach €19.4 billion in 2026, an improvement from the €23 billion deficit in 2025, but still short of the government's initial goal of €17.5 billion. Prime Minister Lecornu acknowledged that the bill 'still records a deficit that is too high' but stated it 'marks the end of a drift in public accounts'.

The tight vote underscores the precarious position of Lecornu's government, which lacks an absolute majority in the National Assembly. The concessions made to the left alienated some centrist and conservative allies, highlighting the challenges of governing in a deeply fragmented political landscape. The bill will now proceed to the Senate for review, after which it will return to the National Assembly for a final decision. Lecornu's next major hurdle will be securing the passage of the separate 2026 state budget plan, a task that has led to the downfall of previous prime ministers.