He also decides to create a specific tax for the operation of this fund: the Contribution for the reimbursement of the social debt (CRDS) at an amount of 0.5% of income.
The executive is trying to negotiate and accept some concessions to avoid a slippage in the Social Security deficit, while a researcher believes that the financing solution lies in social contributions.
This fund carries out short-term loans to fill the gap between the payment of social benefits such as pensions at the beginning of the month and the receipt of contributions at the end of the month, as well as to repay its debts.
The budget rapporteur underlines the importance of extending the end date of Cades to cover the deficits of Acoss.
This deficit set by the executive is based on uncertain growth and payroll assumptions in view of the unstable macroeconomic situation and ongoing social movements.
“Before the long-term debt of the State causes us problems, it is the short-term cash flow of social security organizations which can quickly catch up with us,” declared the budget rapporteur.
The executive still believes in a way forward to maintain the deficit at 12 billion euros in 2027 and avoid an untenable situation regarding the financing of Social Security.