France’s Social Security Deficit Narrows, Concerns Remain

France’s social security deficit is projected to be slightly lower than previously anticipated for 2025, according to the Social Security Directorate of the Ministry of Health. However, despite the improvement, significant concerns persist regarding the long-term financial health of the system.

Deficit Reduction Details

The current deficit forecast stands at €21.6 billion, a decrease from the initially announced €22.1 billion in the 2025 Social Security budget and the €23 billion forecast in December 2025 as part of the 2026 budget. This reduction is primarily attributed to lower-than-planned expenditure .

Specifically, the health insurance branch deficit is now estimated at €15.9 billion, down from the previously projected €17.2 billion. Health insurance spending is €500 million lower than budgeted for 2025, totaling €265.4 billion .

The function accidents, occupational illness, family, and autonomy branches too show slightly improved balances compared to December’s forecasts.

Growing Old Age Branch Deficit

Conversely, the old age branch balance has deteriorated further, reaching -€7.2 billion, compared to -€6.3 billion in December. This widening deficit raises particular concerns about the sustainability of pension provisions.

Union Concerns and Calls for Reform

The UNSA union acknowledged the slightly improved final balance but emphasized that the overall trajectory of Social Security remains “very worrying.” Dominique Corona, the union’s general secretary, stated that there is “no prospect of returning to balance” .

UNSA is calling for substantial reforms to overhaul Social Security financing, including making the CSG (Contribution Sociale Généralisée) more progressive, strengthening taxation on inheritance and wealth, and implementing effective measures to combat fraud .

The union also advocates for an ambitious prevention policy, potentially through tax exemptions for products with a positive health impact.

Government Efforts to Combat Fraud

The French government is actively working to address social security fraud, which the Court of Audit estimates costs the country between €6 and €8 billion annually . Measures include making benefit claims conditional on a minimum residency period in France, merging health cards with national ID cards (though this faces technical and privacy challenges), and cross-referencing social security data with Interior Ministry files .

The government plans to invest €1 billion in information systems and create 1,000 additional posts over the next five years to combat fraud, aiming to double results by 2027 .