France's Social Affairs Committee has unanimously rejected the proposed Social Security Financing Bill, or PLFSS, for 2025, worsening an already serious funding crisis.

This decision, made on Oct 25, forces the government to return to the drawing board to address the social security system's 16-billion euro ($17.28 billion) deficit, with fresh debates in the National Assembly scheduled for Oct 28.

"When Michel Barnier's budget came to committee, it lacked support, and now it leaves with only opponents," said Hadrien Clouet, member of parliament with the left-wing France Unbowed party, as reported by French public television channel Public Senat (Public Senate) last week.

Opposition to the legislation underscores the difficulty in reaching an agreement on key cost-cutting measures among France's political factions.

A particularly divisive proposal was the government's suggestion to freeze pensions for six months to save 4 billion euros. This measure faced significant resistance across political lines, resulting in its removal during committee discussions.

Another contentious reform aimed to change employers' social security contributions, which would have generated nearly 4 billion euros but drew criticism from businesses concerned about potential job losses. The committee's rejection of these two measures marks a major setback to the government's revenue plans.

Amid these challenges, an alternative has emerged with a proposed "solidarity day" where employees work unpaid, with the wages directed to social security funds.

Elisabeth Doineau, a centrist rapporteur for the social security budget in the Senate, advocated for this idea in an interview with Public Senat on Oct 25, suggesting it as a preferable option to the pension freeze.

The "solidarity day" concept was first introduced in 2004 and requires employees to work an additional day without pay, while employers contribute the equivalent wage to social security funds.

In September, a group of female senators proposed reinstating the measure, estimating it could generate around 2.4 billion euros, with potential to reach 3 billion euros if pensioners' contributions were included.

This proposal has gained traction, especially within French President Emmanuel Macron's political camp, where many see it as a workable alternative that avoids cuts to pensions or new costs for employers.

In early October, former Interior Minister Gerald Darmanin backed the solidarity day concept, telling French daily newspaper Les Echos that he supported "abolishing a second public holiday in both the public and private sectors" to raise funds for social security without affecting workers' salaries.

Another blow to the government came when the committee rejected the national health insurance spending target, or ONDAM, for 2025, which set a budget of 263.9 billion euros, a 2.8-percent increase over the previous year.

Yannick Neuder, the general rapporteur of the PLFSS bill, told Public Senat on Oct 25 that voting against the ONDAM was intended to "send a message" to the government on the need for structural reforms.

To address the deficit, left-leaning MPs introduced several new revenue proposals during committee discussions, including a "solidarity tax on billionaires' wealth", an "exceptional contribution on dividends" and a tax on "top-hat pensions", or high-income pensions.

With more than 2,200 amendments up for debate, the government now faces the difficult task of building a coalition around a viable compromise.

The Senate, which leans to the right, could offer the government a more favorable platform for reaching agreements.

Stephanie Rist, an MP from Macron's Renaissance party, noted the gravity of the situation, "We need to review the copy and make changes to ensure this text can secure a vote," Rist told the Le Monde newspaper on Oct 25.

As the government attempts to keep the social security deficit within the 16-billion-euro target, the pushback against proposed revenue measures makes achieving this goal increasingly challenging.

Without a compromise, the government may be forced to use Article 49.3 of the Constitution, allowing it to pass the budget unilaterally — a step that risks triggering a motion of no confidence.

As debate moves to the National Assembly, all eyes will be on whether the government can reach a workable compromise or if more radical proposals, like the additional solidarity day, will gain broader support as France seeks to stabilize its social security system.

The decisions made in this next stage will be crucial in determining the future of one of France's most vital welfare institutions, as lawmakers weigh fiscal responsibility against the demands of the public.