French Prime Minister François Bayrou has unveiled a sweeping plan to address France's escalating public debt and deficit. The government aims to save 43.8 billion euros next year, reducing the budget deficit from 5.8% to 4.6% of GDP by 2026, with a further goal of bringing it below the EU threshold of 3% by 2029. This ambitious fiscal strategy involves freezing public spending, apart from the defense sector, and enacting deep cuts across various public services.
A controversial element of the plan is the proposed elimination of two public holidays, Easter Monday and May 8th, which are intended to boost productivity and generate additional revenue. Additionally, Bayrou has suggested reforms to unemployment insurance and reductions in social welfare benefits. These measures are part of a broader effort to avert a financial crisis similar to that faced by Greece, with France's debt currently at 114% of GDP.
Despite its urgency, Bayrou's austerity measures have encountered significant political resistance. Opposition parties, both on the left and the far-right, view these proposals as an attack on French social welfare and historical traditions. The political landscape in France, characterized by a hung parliament, complicates Bayrou's task of securing legislative support for his plan. President Emmanuel Macron's recent public criticisms of Bayrou and the potential for no-confidence motions add further challenges to the government's efforts.
As France grapples with these economic challenges, the proposed budget cuts and reforms reflect a critical juncture for the nation, with Bayrou emphasizing the need for decisive action to set France on a sustainable fiscal path.
