FRANCE: Lawmakers Reject Gov't Pension Proposal At Cost Of EUR1.2bln In Savings

The gov't has been dealt another blow in its efforts to balance France's gov't finances after lawmakers rejected proposed changes to taxes on pensioners. Under the plans first included in the budget proposal from former PM Francois Bayrou, the current 10% tax break that retirees can claim on their pension incomes would be replaced by a flat deduction of EUR2,000. With the current deduction capped at EUR4,399 (in line with wage earners), the new policy would have hit those claiming over EUR20,000/annum from their pension. 

• The proposal was defeated comfortably in the National Assembly, with a broad range of lawmakers from the far-right Rassemblement National, far-left La France Insoumise, conservative Les Republicains, centre-left Socialist Party, and even from PM Sebastien Lecornu's governing coalition.
• The Finance Ministry claims that the cost of the 10% allowance on pensions and retirement benefits came in at EUR4.5bln in 2023, with the rejection of the measure wiping out a potential EUR1.2bln/annum in savings.
• With the revenue side of the state budget (PLF) having returned to the National Assembly today (13 Nov), deputies have over 1,500 amendments to cover before the vote is scheduled for 15:00CET on 17 November ahead of its passage to the Senate.