The Juppe Plan and the future of the French social welfare system

The Juppe Plan, enacted on 15 November 1995, is the most important reform of the French social protection system (SWS) since its creation in October 1945. First, we describe the French system which is inspired by the Bismarckian model, a work-based model, and its long-term trends in terms of benefits and contributions. Second, we describe the decisions made as part of the Juppe Plan, and their gradual implementation under the Juppe and Jospin governments: more planned care provision in the health-care sector; a set of family policies geared more to those most in need; the introduction of private pensions in a new funded scheme; and above all the introduction of new, more universal mechanisms of funding social security. A project on social cohesion (fight against social exclusion) has also been added to the plan. Third, we analyse the three main consequences of the Juppe Firm: the end of the doctrinal unity of the French system; the economic and financing uncertainties surrounding the implementation of the reforms; and the political confusion which largely explains why the new left-wing Jospin government can carry on with the implementation of the reform.