Prime Minister François Bayrou announced a savings plan on Tuesday, worth around EUR 44 billion. He stressed that France was on the brink of a serious debt crisis. As previously anticipated, the government decided to frost public spending in the next year's budget – neither will it be raised nor indexed against inflation. The only exception will be the Ministry of Defence budget, which is expected to be increased in 2026.
Prime Minister Bayrou's savings plan assumes wide cuts in public spending. The simplification of resources transferred to local governments and the simplification of state spending is expected to save a full of €21 billion. A further €7 billion is planned by the government through the freezing of social benefits and taxation thresholds.
The most noticeable cuts will affect the wellness system. The budget in this area is to be reduced by half, from EUR 10 billion to EUR 5 billion. The planned actions included, among others, a limited reimbursement of medicines not related to the treatment of chronic diseases and the fight against the abuse of sick leave.
More Work
However, most controversy was raised by the proposal of Prime Minister Bayrou to liquidate 2 of the present eleven state holidays in France. Among the days that could be abolished, he indicated Easter Monday and the 8 May triumph Day in Europe. Bayrou argued that May is simply a period overburdened with days off, which negatively affects the economy. The abolition of this vacation would, in his view, bring multi-billion-dollar benefits to the state budget.
As a nation we must work more said Bayrou.
Marine Le Pen, the leader of the French right, warned that if the Prime Minister did not retreat from his controversial proposals, her group would effort to push the government distant from power.
This government would alternatively attack Frenchmen, workers and pensioners than track waste. – wrote Le Pen on platform X erstwhile Bayrou presented his plan for budget cuts.
Other savings
The Prime Minister besides announced a simplification in public administration staff. Within the framework of the reform, 1 of the 3 positions left by officials retiring will not be filled.
The government besides plans to reduce the number of agencies performing public tasks, any of which will be merged or liquidated. The number of posts in the administration is estimated to decrease by about 3,000.
Bayrou besides announced the beginning of talks with social partners on the unemployment benefit system.
As part of the taxation system, the Prime Minister announced the liquidation of the alleged taxation niches, which he described as unnecessary and ineffective.
