Overview

• The 2026 budget outline targets €40–43.8 billion in savings through spending freezes, tax adjustments and the elimination of two public holidays.
• Proposed cuts include scrapping Easter Monday and Victory in Europe Day, freezing social benefits and civil-servant wages, and axing up to 4,500 government jobs.
• The measures aim to trim France’s deficit from about 5.4% of GDP this year to 4.6% in 2026 and reach the EU’s 3% ceiling by 2029 amid a record €3.3 trillion debt and €67 billion in annual interest.
• President Macron’s call for an extra €6.5 billion in defence spending over two years deepens the fiscal squeeze and complicates negotiations.
• Broad opposition from left and right parties could trigger a no-confidence motion, prompting Bayrou to consider bypassing a parliamentary vote under Article 49.3.