French lawmakers on Thursday rejected a measure expected to raise 3.7 billion euros, roughly 4.1 billion dollars, for the social security system. The broadcaster BFMTV reported that the vote undermined government efforts to narrow the national deficit.
The provision formed part of the 2027 social security financing bill. It would have reduced employer contribution relief for companies paying profit sharing or employee share ownership bonuses.
Deputies rejected Article 7 following three days of debate. The discussions saw multiple votes that either reduced projected revenue or added new spending.
Lawmakers from President Emmanuel Macron’s camp and the political right supported amendments to remove the provision. Opponents argued that the measure was harmful to businesses.
Socialist lawmaker Jerome Guedj criticized the outcome during the session. "You are killing this Social Security Financing Bill," he said, accusing fellow MPs of jeopardizing efforts to restore the system’s finances.
Labor Minister Jean-Pierre Farandou warned about the financial consequences of the parliamentary proposals. "We are no longer talking about the 15 million or 100 million we were discussing yesterday, we are talking about billions of euros," he stated.
Green lawmaker Sandrine Rousseau raised the prospect of a no confidence motion. She accused opponents of abandoning previously agreed compromises.
The government aims to reduce the social security deficit from an expected 21.8 billion euros in 2026 down to 12.7 billion euros in 2027. The rejection of the entire revenue section could prevent lawmakers from examining the remaining spending provisions of the bill.
