France: The security deficit should reach 18 billion euros

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  11/10/2024 | Pascal Lemontel

 

 
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In France, the Social Security deficit will reach 18 billion euros in 2024, according to sources in the draft budget (PLFSS 2025), exceeding the May forecasts which estimated it at 16.6 billion. For 2025, the government forecasts a deficit of 15.7 billion euros, largely due to the health sector which slips to 14.6 billion in 2024.

To remedy the situation, savings measures are being considered, including the postponement of the revaluation of pensions for six months, the review of contribution exemptions for companies, and the transfer of part of the reimbursements to supplementary health insurance. Health Insurance could reduce its contribution to financing sick leave, transferring this burden to companies or employees themselves.

Pierre Pribile, director of Social Security, attributed the slippage to an “inflationary shock” which had a heavy impact on social accounts, mainly due to a gap between indexed benefits and revenues dictated by changes in wages. The revaluation of pensions and small pensions indexed to inflation also contributed to widening the deficit.

  Pascal Lemontel

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