the planned deficit reduced by 1 billion euros during its examination in the Senate

2024-11-22 02:59:00
The Minister of Health, Geneviève Darrieussecq, delivers a speech during a session on the examination of the Social Security financing bill for 2025, at the Senate in Paris, November 18, 2024. BERTRAND GUAY / AFP

The government has revised downwards – from 16 billion to 15 billion euros – the forecast deficit of Social Security in 2025 after the examination of the budget in the Senate, where all the measures taken into account have not yet been voted.

Halfway through the discussion, the executive is already taking stock of the debates at the Palais du Luxembourg on the Social Security financing bill for 2025.

And the account is less bad than at the start: according to the amendment tabled by the government and adopted by the upper house of Parliament, “the balance” of “Secu” “comes to – 15 billion euros, compared to – 16 billion initially planned”.

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An improvement of 1 billion euros which “takes into account the financial impact of the adopted amendments” since Monday, said the Minister of Health, Geneviève Darrieussecq. In particular the new “solidarity contribution”, equivalent to seven hours of unpaid work per year and supposed to bring in 2.5 billion euros.

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Added to this are increases in “behavioral” taxes (tobacco, sodas, gambling) for 500 million, and increased taxation on “free shares” for 500 million more. The minister also welcomed a “good news on VAT revenue”better than expected to the tune of 200 million.

“Less favorable measures on revenue”

In the opposite direction, the Senate voted “less favorable measures on revenue”in particular on employer contributions (1.1 billion euros), but also the retirement fund for territorial civil servants (600 million) and apprentices (200 million).

Geneviève Darrieussecq also reported additional expenditure of 300 million euros for health, and 400 million on pensions due to the two-stage revaluation negotiated between the Prime Minister, Michel Barnier, and the man strong on the right, Laurent Wauquiez.

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This compromise plans to increase pensions by half of inflation on January 1, then by a second half on July 1 for only pensions below the minimum wage.

However, this measure has not yet been voted on in the Senate, where the “revenue” part of the Social Security budget was largely adopted, Thursday evening at the end of the session, by 229 votes to 108. More than 350 amendments remain to be examined on the “expenses” part by Saturday evening.

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What strategies is Minister Geneviève Darrieussecq implementing to reduce ⁢the ​Social Security deficit⁤ in France?

**Interview with Geneviève Darrieussecq,⁤ Minister of Health**

**Date:** November 22, 2024

**Interviewer:** [Your Name]

**Location:** Senate, Paris

**[Your Name]:** Thank you for joining us⁣ today, Minister Darrieussecq. In your recent ​speech regarding the Social Security⁣ financing bill, you mentioned ‌a revision of the forecast ‍deficit for 2025 from 16 billion euros to‌ 15 billion euros. What prompted ‌this⁤ adjustment?

**Geneviève Darrieussecq:** ⁣Thank‍ you for having me. The revision reflects several‌ positive developments during the ⁤Senate discussions. We analyzed the financial impacts of the ‌amendments that ​were discussed and adopted.​ The balance of Social Security is ‌indeed improving—initially projected at a 16‍ billion euro deficit, we are now looking at a reduced deficit ‌of 15 billion euros.

**[Your Name]:** That’s encouraging news. Can you elaborate on ⁢the key measures that contributed to this downward revision?

**Geneviève Darrieussecq:** Certainly. One notable proposal that has been well ⁤received is the introduction of a new “solidarity contribution.” This measure effectively‍ equates to seven hours of unpaid ⁤work per person annually and is expected ⁢to generate‌ approximately 2.5 billion euros. Additionally, there have been‍ proposed increases‍ in “behavioral” taxes, which will also aid our funding efforts.

**[Your Name]:** It sounds like there are efforts to create more efficient financing for Social Security. However, there are still some uncertainties ‍as ‍not⁣ all measures have been voted⁣ on‍ yet. How confident are you that these‌ initiatives will be solidified?

**Geneviève Darrieussecq:** While ‌it’s true that we have not yet finalized all the measures, the supportive response from the Senate gives us optimism. As we⁤ continue to refine our ‌proposals and engage in constructive dialog ⁢with legislators, I am hopeful ‌that we will secure the necessary votes‌ to ⁤implement these changes.

**[Your Name]:**⁢ Looking ahead, what ⁣further challenges do you foresee in managing the Social Security budget, and how does the government plan to address them?

**Geneviève Darrieussecq:**‍ We know that the financial landscape‍ is always evolving, and we‌ must remain vigilant. Challenges will certainly arise as we adapt to changing‌ demographics and healthcare‍ costs. We aim to pursue a balanced approach⁣ involving careful scrutiny of spending, the introduction of new revenue measures, and continued dialog with all⁣ stakeholders to ensure the sustainability of Social Security.

**[Your Name]:** Thank⁤ you for sharing your insights, Minister Darrieussecq.⁣ We ​look forward to seeing how the budget discussions evolve.

**Geneviève Darrieussecq:**⁢ Thank you for having me. It’s important ⁢for us to continue these discussions with‍ transparency and collaboration.

This format captures the essence of the developments ⁢regarding the Social‌ Security financing bill in France⁣ and ⁢allows Minister Darrieussecq to articulate the government’s strategy ‌and outlook​ moving forward.

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