Unemployment insurance: the government is aiming for “2 to 2.5 billion euros” in savings per year from 2026 to 2029

By The New Obs with AFP

Published on August 9, 2025 at 5:18 p.m. , updated August 9, 2025 at 5:19 p.m.

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The government has sent the social partners a "framework letter" on unemployment insurance, a roadmap setting out the framework for negotiating a new reform, with the objective of achieving "2 to 2.5 billion euros" in savings per year from 2026 to 2029, according to the document consulted by AFP this Saturday, August 9.

If they agree to open negotiations on unemployment insurance, employers and unions are invited to reach an agreement by November 15 and to generate between "2 billion euros and 2.5 billion euros" in savings per year on average over the next four years, "with a gradual increase" to reach "at least 4 billion euros in savings at cruising speed from 2030" , according to this document.

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In order to "encourage a rapid return to employment" , the framework document adds that it will be necessary to "modify the minimum duration of employment and the reference period necessary to open a right to unemployment which determines the maximum duration of compensation" .

"The financial situation of the unemployment insurance system and the need for more people to work make it necessary to change the rules of unemployment insurance," wrote Prime Minister François Bayrou in his letter to the social partners accompanying the framework document.

Arguing that "we must work more" , François Bayrou had hoped on July 15 that the social partners would open such negotiations on unemployment insurance to participate in the budgetary effort.

The unions then angrily welcomed the government's budgetary options and the announcement of these negotiations, in particular the new tightening of the unemployment insurance system, described as "total carnage for job seekers" by the CFDT's leader, Marylise Léon.

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