French Prime Minister François Bayrou on Tuesday unveiled a sweeping plan to restore France’s public finances, warning of the "deadly danger" of being "crushed by debt".
Presenting his outline 2026 budget plan, Bayrou said two holidays out of France's total of 11 could go, suggesting Easter Monday as well as 8 May, a day that commemorates the end of World War II in Europe.
Calling May “a month riddled with public holidays,” he said the measure could generate “several billion euros” in revenue. He added he was “open to other suggestions”.
Opening his address he said, “We are at a critical moment in our history.” He explained that France's public deficit has now reached 5.8% of GDP in 2024 and that public debt climbed to nearly 114 percent - the third-highest in the eurozone after Greece and Italy.
Citing Greece’s debt crisis in the 2010s, he said, “We must never forget the story of Greece.”
He added: “Every second, France’s debt increases by €5,000,” and criticised a mindset in which “people expect the state to pay for everything.” He added: “We’ve become addicted to public spending.”
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Cut debt, boost output
Bayrou, who heads a minority government with limited political leeway, outlined a two-pronged approach: cutting debt while boosting production, though military spending will rise by €6.7 billion in 2026 in the face of growing international tensions.
His goal is to reduce the deficit to 2.9% of GDP by 2029, “the threshold at which, in a country like ours, the debt no longer grows.”
To achieve this, Bayrou said, “the state must not spend a single euro more in 2026 than it does in 2025,” with the exception of debt repayments and military funding.
The government will eliminate 3,000 public sector jobs, shut down “unproductive agencies,” freeze pensions, and cap all social benefits at 2025 levels.
A contribution from the wealthy is also planned, though the details will be determined by parliament.
“The national effort must be fair - asking little from those with little, and more from those who have more,” Bayrou said. He also announced stronger measures to combat welfare fraud.
In the health sector, where high medication use has been a longstanding concern, €5 billion will be cut from annual social spending.
Overall, €21 billion in savings are projected for 2026 through reductions in state, local, and social spending, with another €7 billion expected from freezing social benefits and income tax brackets.
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Political backlash
The proposal drew immediate political backlash.
“If François Bayrou does not revise his plan, we will table a motion of no confidence,” warned far-right leader Marine Le Pen.
“Emmanuel Macron and François Bayrou are incapable of making real savings and are once again sending the bill to the French people,” she added, criticising the lack of cuts to immigration or subsidies for intermittent energy sources such as solar and wind.
Jordan Bardella, president of the National Rally (RN), also called the plan a “provocation,” writing on X: “Abolishing two public holidays as meaningful as Easter Monday and 8 May is a direct attack on our history, our roots, and working France. No RN MP will support this.”
Far-left leader Jean-Luc Mélenchon of France Unbowed (LFI) also responded on X: “Bayrou must go. These injustices must no longer be tolerated.”
Trade union, local leaders react
Sophie Binet, head of the CGT union, said the proposed elimination of 8 May - "Victory in Europe Day" - was “extremely serious.” She told French news agency AFP: “We’re not talking about just any day - this is 8 May, the day marking victory over Nazism. At a time when the far right is on the brink of power (...) the prime minister tells us he wants to abolish 8 May. That is extremely serious.”
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The president of the Local Finance Committee (CFL), André Laignel, also pushed back against the plan, calling the €5.3 billion in savings demanded from local authorities “unacceptable to all local elected officials.” Speaking to AFP, Laignel, who is also deputy vice-president of the Association of Mayors of France (AMF), warned: “If these proposals are upheld, we would be forced to appeal to parliament to reject this budget,” adding that the actual burden on local authorities could prove even greater.
(With newswires)
