F
rance's social security system, which marks its 80th anniversary this year, has never been in such an alarming state. Despite repeated warnings about the sustainability of its funding, nothing has been done about it. After a slight improvement after the Covid-19 crisis, its deficits have begun to grow once again, while measures to remedy the situation have been slow in coming. In response to the apathy shown by the government, the Court of Accounts, France's public audit institution, has changed its tone. Its report on the "implementation of the social security budget," published on Monday, May 26, speaks of a risk of a "liquidity crisis" it says could lead the system to a "default on payments."
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While the alarmist language is unprecedented, the dire state of the social security system's finances is not. The deficit, which was supposed to stabilize in 2024, ended up worsening by nearly €5 billion, and now exceeds €15 billion. Furthermore, it is set to deteriorate further this year, mainly due to an imbalance in the healthcare branch. The €22 billion deficit forecast for the social security budget passed in February already appears difficult to sustain. Despite a few cost-saving measures implemented in 2025, the situation is expected to continue to deteriorate, with the deficit surpassing €24 billion in 2028, if nothing is done.
