French PM Bayrou Proposes Cutting Two National Holidays in Sweeping Budget Plan
France’s Prime Minister François Bayrou has unveiled a bold and controversial 2026 budget aimed at tackling the country’s soaring debt and fiscal deficit. In a press conference held on July 15, 2025, he proposed a €43.8 billion austerity package combining tax hikes, spending freezes, and structural reforms—including the elimination of two public holidays, likely Easter Monday and Victory in Europe Day on May 8. The move could yield approximately €4.2 billion in additional economic activity and tax revenue .
📊 Key Elements of the Plan:
- Tax & Revenue Measures: New levies on high earners, parcel taxes, and a crackdown on tax loopholes and fraud.
- Spending Controls: Freezes on welfare, pensions, civil servant pay, and government spending—excluding defense—to save billions .
- Healthcare & Agencies: Capping healthcare costs and trimming or merging public-sector agencies.
- Public Sector Workforce: Cutting civil service posts and not replacing retirees to reduce long-term obligations .
- Defense Budget: A 10% increase in defense spending (~€6.5 billion) due to growing geopolitical threats .
Bayrou’s goal is to reduce France’s deficit from 5.8% of GDP in 2024 to 4.6% by 2026, and ultimately to the EU-mandated 3% by 2029.
🚨 Political Backlash & Risks:
The plan has sparked fierce opposition from the far-right National Rally, leftwing parties, and union federations—labeling it an assault on working people, retirees, and national culture . Marine Le Pen has threatened to trigger a no-confidence vote, while Socialist and far-left MPs deride the proposal as “a demolition of the French social model” .
🔍 What’s Next?
Bayrou doesn’t have a parliamentary majority. He may use constitutional mechanisms to push the bill through, but could face a no-confidence motion as early as October when the detailed budget is debated .
📈 Bigger Picture:
- France carries €3.3 trillion in public debt with close to €60 billion in annual interest. Without reform, payments could reach €100 billion by 2029 .
- Failure to act risks credit downgrades and fiscal vulnerability reminiscent of the Greek debt crisis
