The French government presented on Tuesday two bills on Social Security, one organizing a transfer of social debt which postpones to 2033 the repayment of the " hole of the Safely ", the other initiating the creation of a new dedicated branch the care of dependent elderly people.
Read also: Trou de la Sécu: the harsh warning from the Court of Auditors
The deficit in Social Security accounts, whose reduction had already slowed down in 2019 due to the measures taken in response to the yellow vests crisis, will widen sharply this year due to the impact of the coronavirus pandemic .
The government plans to transfer 136 billion euros of debt to the Social Security Fund to the amortization of the social debt (Cades), the agency that " sponge " debt of Social Security in the apurant for a limited period to prevent them from weighing on future generations.
Cades, whose lifespan has been extended twice since its creation in 1996, was previously supposed to reduce social debt to zero in 2024 but this objective has now been postponed " to 2033 ", it is specified in a joint press release from the Ministries of Health, the Economy and Finance, and Public Accounts.
Bercy had already warned last month that the social security deficit should reach 41 billion euros this year, against a deficit of 5.4 billion anticipated in the Social Security financing law voted last December.
To cope with this explosion of deficits, the government raised from 70 to 95 billion euros the borrowing ceiling of the Central Agency of social security organizations. The government has also started work on the creation of a new social security branch for the care of dependency.