French lawmakers adopt social security budget and suspend pension reform

"The version of the bill lawmakers approved includes the suspension of a 2023 reform to raise the retirement age from 62 to 64 - a concession that secured the support of the Socialists, a swing group in parliament. France, the eurozone's second-largest economy, is under pressure to rein in its deficit and soaring debt, but efforts have been hampered by a political deadlock."

"Lecornu, the country's third prime minister in a little over a year, has promised to get a budget through parliament, after the legislature ousted his two predecessors over cost-cutting measures. The premier -- who survived a no-confidence vote in October -- also vowed not to use a controversial constitutional power used in the past to ram budget bills through parliament without a vote. Tuesday's vote marks the first budget adopted without using article 49.3 of the constitution since 2022."

"Lawmakers now face mounting pressure to pass a draft state budget bill, with negotiations set to begin on Friday. Should a joint committee of MPs and senators reach an agreement, the budget would then go to a vote in the lower house, where Socialists have said they would not support it but could abstain, while the Ecologists have pledged to vote against it. If the two chambers fail to agree on the budget bill by year's end, the government can temporarily extend the budget."

French National Assembly approved the social security budget by 247 votes to 232, including suspension of the 2023 reform that raised the retirement age from 62 to 64. The suspension secured Socialist support. Prime Minister Sébastien Lecornu aims to finalise a 2026 spending plan by year-end amid pressure to reduce deficit and debt. Political deadlock stalled previous budget efforts and led to two ousted prime ministers. Lecornu survived a no-confidence vote and pledged not to use constitutional article 49.3 to force budgets. Negotiations on the state budget begin Friday; failure to agree by year-end would allow temporary extension of the budget.

Read at The Local France