Paris, November 2, 2025 – In a stunning rebuke to Prime Minister Sébastien Lecornu's fragile minority government, French lawmakers in the National Assembly's Social Affairs Committee on Friday decisively rejected the government's draft social security budget bill for 2026. The vote, reported by BFM TV, marks yet another chapter in France's ongoing political and fiscal turmoil, coming just weeks after Lecornu narrowly survived no-confidence motions and amid escalating demands from opposition parties for deeper concessions on taxation and social reforms. Despite last-minute concessions—including the suspension of the deeply unpopular 2023 pension reform—the committee's rejection of both the revenue and spending sections effectively torpedoes the entire bill ahead of its full debate in the National Assembly on Tuesday.
The decision underscores the precarious position of Lecornu's administration, which was reappointed by President Emmanuel Macron in early October following a whirlwind of resignations and political maneuvering. Lecornu, a 39-year-old centrist and former defense minister known for his Gaullist leanings, has been Macron's sixth prime minister in less than two years, a testament to the instability plaguing French politics since the inconclusive snap legislative elections of 2024. His government, propped up by a tenuous coalition of Macron's Ensemble alliance and select center-right Les Républicains, faces relentless pressure from both the left-wing New Popular Front (NFP) and the far-right Rassemblement National (RN). With France's public debt hovering at 114% of GDP and a projected 2025 deficit of 5.4%—the highest in the eurozone after Greece—lawmakers' intransigence threatens to plunge the country into further budgetary chaos, potentially forcing the invocation of Article 49.3 to ram through measures without a vote.
The committee's rejection was not entirely unexpected. Earlier in the week, lawmakers had already voted down the revenue section of the bill, citing insufficient measures to address France's ballooning social security deficit, projected to reach €13.5 billion annually by 2030 without intervention. On Friday, the spending portion met a similar fate, with a majority of committee members—from Socialists and ecologists on the left to some centrists—arguing that the government's proposals failed to protect vulnerable populations amid rising inflation and healthcare costs. "This budget is a mirage of austerity dressed up as responsibility," said one Socialist deputy anonymously after the vote. "It cuts where it hurts and spares where it shouldn't."
Yet, the day was not without partial victories for Lecornu's embattled team. In a move that elicited cautious applause from left-leaning benches, the committee approved an amendment suspending the contentious 2023 pension reform by a margin of 22-12. The reform, a flagship policy of Macron's second term, gradually raised the legal retirement age from 62 to 64 over eight years while extending the required contribution period from 42 to 43 years for a full pension. Pushed through parliament in April 2023 by then-Prime Minister Élisabeth Borne using Article 49.3—bypassing a direct vote—it ignited one of the longest protest waves in modern French history. Millions took to the streets in spring 2023, with strikes paralyzing transport, refineries, and schools for months, as unions decried the changes as an assault on workers' rights and intergenerational equity.
Lecornu first floated the suspension idea on October 14 during a high-stakes policy speech to parliament, framing it as a "pragmatic pause" until after the 2027 presidential election. "There will be no increase in the retirement age before January 2028," he pledged, directly addressing a core demand from the Socialist Party (PS), whose 57 deputies hold the balance of power in the 577-seat National Assembly. The proposal would benefit approximately 3.5 million workers born between 1964 and 1968, sparing them phased-in age hikes set to begin in 2026. However, Lecornu emphasized the fiscal guardrails: the suspension would cost €400 million in 2026 and €1.8 billion in 2027, necessitating offsetting savings through efficiency measures rather than deficit spending. He also announced a national conference on pensions and working conditions, involving unions and employers, to explore long-term reforms—potentially including boosts to women's pensions and penalties for arduous jobs.
The concession, while welcomed by Socialist leader Boris Vallaud as a "step toward justice," has drawn sharp criticism from Macron's inner circle and business lobbies. Bernard Arnault, CEO of luxury giant LVMH and France's richest man, lambasted it as "short-sighted populism" in a rare public statement, warning of eroded investor confidence. Economists are divided: Nobel laureate Philippe Aghion, a Macron ally, called it a "necessary compromise for stability," while others, like the Institut Montaigne think tank, estimate it could add €4 billion to long-term pension liabilities if not reversed post-2027. Labor unions, including the powerful CGT, hailed it as a "workers' victory" but demanded a full repeal, vowing renewed strikes if the pause proves temporary.
Compounding the pension drama, the committee also scuttled an article introducing the so-called "Zucman tax"—a 2% minimum levy on net fortunes exceeding €100 million ($116 million), named after economist Gabriel Zucman of the Paris School of Economics. Zucman's proposal, which would affect only about 1,800 ultra-wealthy households, aims to generate €15-20 billion annually by ensuring billionaires pay proportionally as much as average earners (currently, they pay half as much when factoring in all levies). Championed by the PS and ecologists as a bulwark against inequality—amid data showing the top 500 fortunes grew three times faster than national wealth since 1996—the tax has surged in popularity, polling at over 70% support across party lines.
Yet, it faced fierce opposition from centrists and the right, who decry it as unconstitutional and a flight risk for capital. "This isn't justice; it's expropriation," argued Renaissance deputy Aurore Bergé during debates. The rejection prompted Vallaud to lash out at Lecornu in a fiery exchange: "By your intransigence, I fear you are taking the wrong path. I tell you, Mr. Prime Minister, there has not been, since we have been in this chamber, the slightest compromise." The Socialists, who toppled two prior governments this year, have intensified threats of a no-confidence motion if the tax isn't revived in Tuesday's plenary session, potentially allying with the far-left La France Insoumise (LFI) and even the RN.
Lecornu's path to Tuesday's vote is fraught. The full budget bill, part of a €60 billion austerity package to trim the deficit to 5% of GDP, includes €40 billion in spending cuts and €20 billion in tax hikes—measures already diluted by amendments during committee scrutiny. Without left-wing support, invocation of Article 49.3 looms, but that risks immediate censure, as seen in December 2024 when Michel Barnier's government fell after a similar maneuver on the 2025 social security bill. "We're walking a tightrope over an abyss," a government source confided to Reuters. Macron, whose approval ratings languish below 30%, has remained publicly silent but reportedly urged Lecornu in private to "hold the line on fiscal responsibility."
Broader economic stakes are immense. France's CAC 40 index dipped 1.2% on Friday amid the news, with borrowing costs briefly surpassing Greece's—a humiliating milestone for the eurozone's second-largest economy. The European Commission, enforcing fiscal rules post-pandemic, has warned of infringement procedures if the 2026 budget falters, potentially triggering automatic sanctions. Internationally, the crisis echoes France's 2024 legislative meltdown, when the NFP's surprise plurality forced Macron into months of caretaker governance.
Opposition figures seized the moment. LFI leader Mathilde Panot tweeted: "The rejection is a cry from the people against Macron's endless austerity." RN's Marine Le Pen, eyeing 2027, positioned her party as the "defender of retirees," while subtly courting centrists disillusioned by the pension U-turn. On the streets, Paris saw scattered protests, with pensioners chanting "64, never!"—a refrain from 2023 now laced with cautious optimism.
As the National Assembly gears up for Tuesday, analysts predict horse-trading will intensify. Vallaud has signaled openness to a revised Zucman tax—perhaps at 1.5% with exemptions for "innovative" firms—if paired with healthcare investments. Lecornu, in a weekend interview with Le Monde, vowed "no taboos" but insisted on "European-compatible" reforms. Yet, with the 2027 election looming, today's committee clash may foreshadow deeper rifts, testing whether France can stabilize its finances without unraveling its social contract.
For now, the rejection leaves the social security system in limbo: vital programs like family allowances and long-term care hang in balance, while the pension suspension offers fleeting relief to millions. In a nation where social protections are sacrosanct—France spends 14.2% of GDP on pensions, double the OECD average—these battles reflect not just budgetary math, but a profound clash over equity in an era of squeezed middle classes and untaxed elites. As one veteran observer put it: "Lecornu bought time with the pension pause, but without the Zucman tax, he's mortgaging his future." The week ahead will reveal if compromise prevails—or if France edges closer to another governmental implosion.
