Overview

• Bayrou’s 2026 budget proposes eliminating Easter Monday and May 8 public holidays to boost economic output and government revenue
• The plan includes a freeze on public sector pay, pensions and welfare benefits, mandates that one in three retiring civil servants not be replaced, and increases defence spending to meet NATO commitments
• Officials project these measures will shave €43.8 billion off the deficit, bringing it down to 4.6% of GDP in 2026 with a longer-term target of 2.9% by 2029
• An Ifop poll released July 21 found only 18% of respondents approved of Bayrou’s performance and just 19% backed Macron, marking record lows for both leaders
• Several credit rating agencies have downgraded France’s sovereign rating, warning that the minority government’s instability threatens debt sustainability