Pierre Moscovici, president of the Court of Auditors, stressed the urgent need for financial oversight of Social Security during a Senate session. He warned of a projected annual deficit of €19.9 billion by 2028, largely affecting health and old-age sectors. Without intervention, Social Security could face a “financing deadlock” with €100 billion in new deficits. The National Assembly has yet to finalize the Social Security budget, which will be sent to the Senate for further consideration.
Pierre Moscovici Highlights Urgent Need for Financial Control in Social Security
During a critical session on November 6, Pierre Moscovici, the first president of the Court of Auditors, emphasized the urgent necessity to regain financial oversight of social accounts. He asserted that this step is vital to uphold the sustainability of our solidarity and cohesion model.
Concerns Over Social Security’s Financial Trajectory
In an appearance before the Senate Social Affairs Committee, Moscovici raised alarms about the financial direction of Social Security between 2026 and 2028, as outlined in the 2025 budget proposal. The plan aims to bring the public deficit below the 3% threshold by 2029; however, it is projected to remain “strongly degraded” by 2028. The Court of Auditors revealed that without intervention, the annual Social Security deficit could escalate to €19.9 billion by 2028, with no foreseeable path to financial equilibrium.
The report indicates that the structural deficit will largely impact the health and old-age sectors, with projected deficits of €16 billion and €6 billion, respectively. Moscovici pointed out that this trend underscores the increasing burden of Social Security expenditures on the gross domestic product, exacerbated by demographic changes and the rise of chronic illnesses. He stressed the need for focused efforts on the health sector, which is the primary contributor to the Social Security deficit.
Moscovici firmly stated that taking back financial control is essential for ensuring the longevity of the Social Security system. He acknowledged the challenges involved but maintained that achieving this goal is possible.
The Court of Auditors warned that without decisive action, Social Security may face a “financing deadlock,” accumulating approximately €100 billion in new deficits by 2028. The Social Debt Amortization Fund (Cades), which has been managing the debt through long-term loans, has reached its limit as of 2023. Future deficits will be funded through the cash management of Social Security (Acoss), which relies on short-term borrowing—a more costly option.
In legislative news, the National Assembly was unable to finalize the examination of the Social Security budget on Tuesday night. Consequently, the original version will be forwarded to the Senate, potentially augmented by amendments introduced by the government. The deputies are set to resume discussions on the revenue aspect of the State budget on Wednesday.