France has a Social Security Budget for 2026

Y es ter day ( November 9 ) , the National Assembly adopted the Social Security Financing Bill (PLFSS) for 2026, following a tight vote with 247 votes in favour, 234 against, and 93 abstentions. The PLFSS will now go to the Senate before returning to the National Assembly for a final reading ahead of its definitive adoption, which expected to be straightforward. The government's initial proposal underwent significant modifications, most notably the rejection of a freeze on pensions and social benefits, as well as an increase in certain revenues, particularly the rise in the General Social Contribution (CSG) on specific capital and wealth income. The approved bill is projected to result in a Social Security deficit of approximately €19.4 billion (0.7 % of GDP) in 2026, according to the government. A rejection of the PLFSS would have l ed in a widening deficit of around €30 billion (1 % of GDP). The extremely tight timetable and significant political divergences among the parties— wherein some opposition parties have invested substantial political capital to pass the PLFSS— pose substantial obstacles to the approval of a State Budget before the end of the year. Our central scenario remains that a special finance bill on the State Budget will be enacted before year-end, with adoption of a full Budget expected in early 2026. Monthly data from the State Budget suggest that the public deficit for 2025 may be slightly lower than anticipated, around 5.2%, compared to the 5.4% projected by the government. Thus, a deficit target of 5% for 2026 seems attainable, especially as a special finance law regarding the State Budget could yield some short-term budgetary consolidation.