France’s Prime Minister François Bayrou has outlined plans to cut €43.8 billion from the national budget, warning that debt presents a “mortal danger” for the country.
The cuts involve reducing the number of people employed in the civil service and a so-called “solidarity contribution” for “the wealthiest”, as well as scrapping tax breaks for business expenses for pensioners.
He also proposed getting rid of two public holidays, citing Easter Monday and 8 May as possible contenders to be scrapped.
Bayrou said that would make it possible to increase productivity without raising taxes or VAT.
May 8 has historical significance in France and across Europe as it marks the surrender of Nazi Germany in 1945 and the end of World War II in Europe.
“It’s the last stop before the cliff, before we are crushed by the debt,” Bayrou told MPs, saying that debt is increasing by €5,000 every second.
“It’s late but there is still time,” he added.
He said the French shouldn’t forget the financial woes Greece experienced more than a decade ago when it went through a full-blown debt crisis and needed multiple international bailout packages and years of austerity to get back on its feet.
France’s public deficit hit 5.8% of GDP in 2024, totalling €168.6 billion, a figure well above the maximum allowed by EU rules.
In his announcement, Bayrou outlined significant budget cuts with the aim of slashing tens of billions of euros, aiming to bring the deficit down to 5.4% of GDP this year and 4.6% in 2026.
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He is hoping the cuts will bring the deficit to below the 3% threshold set by the EU by 2029.
President Emmanuel Macron has tasked his prime minister with repairing public finances with the 2026 budget after the snap election he called last year resulted in a hung parliament too divided to tackle spiralling spending.
Following the recommendations of Macron and citing the situation in both Ukraine and the Indo-Pacific region, Bayrou said no cuts would be made on national defence spending.
€3.5 billion will be included in the 2026 budget, with a further €3 billion in 2027.