France Approves Social Security Budget But Still Lacks A State Budget
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ING Economic and Financial Analysis4.95K FollowersFollow5ShareSavePlay(6min)CommentsSummaryFrance passed its social security budget, but the state budget remains unresolved, and the deficit outlook is worsening.The French parliament is to pursue a highly expansionary policy. While tax hikes on capital income will generate some revenue, they fall far short of offsetting the surge in spending.France’s fiscal situation will remain under close scrutiny from rating agencies and investors in the weeks ahead.
Getty Images By Charlotte de Montpellier, Senior Economist, France and Switzerland France passed its social security budget, but the state budget remains unresolved, and the deficit outlook is worsening What was voted today: the social security budget The NationalThis article was written byING Economic and Financial Analysis4.95K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.Quick InsightsHow will the 2026 social security budget impact France's fiscal deficit?The 2026 social security deficit is projected at €19.4 billion, remaining elevated despite tax hikes and additional state transfers.What are the implications of raising the CSG on capital income for investors?The CSG on capital income rises from 9.2% to 10.6%, increasing the total tax burden on capital income to 31.4%, though some investments are exempt.What is the outlook for France's overall fiscal trajectory and investor risk?With persistent political divisions and expansionary policy, France’s deficit is likely to stay above 5% of GDP, worsening debt metrics and heightening rating agency scrutiny.Recommended For You