French National Assembly Rejects 2027 Social Security Budget

France's National Assembly on Friday rejected the government's proposed social security budget for 2027, sending it to the Senate without examining its spending provisions, Turkey's state-run news agency Anadolu Agency reported.

The rejection was by 115 votes to 1, primarily over disagreements on revenue provisions. Most of the key measures had been removed before the vote, leading to the defeat of the entire bill.

The opposition came from left-wing lawmakers, the far-right National Rally and its allies, and most members of the conservative Republicans. Supporters of the government largely abstained, with only one member of the centrist MoDem party voting in favor.

The Senate is set to begin examining the government's original version of the bill on November 9. The proposal aims to reduce the social security deficit to €12.7 billion ($14.7 billion) in 2027 from €21.8 billion in 2026, with retirees expected to bear a significant share of the savings.

France's Court of Auditors recently urged the government and parliament to balance the social security budget by 2030, emphasizing the need for corrective action next year. The vote took place amid widespread protests over school conditions and the cost of living.

The rejection comes as France faces concerns over its high public debt and the government's ability to pass its 2027 budget. The country's 10-year government bond yield rose above 5% this week for the first time since 2002.

The National Assembly's Social Affairs Committee had already rejected the proposal earlier this month.

France's social security system has been under pressure, with rising costs and a significant deficit. The government has been trying to find ways to reduce the deficit and bring the system into balance.