Overview

• Bayrou’s two-pillar framework calls for €40 billion in savings and a €3.5 billion defense boost to cut the deficit to 4.6 percent of GDP by 2026.
• Savings proposals include a one-year freeze on selected spending items (année blanche), pension index freezes for high-income retirees and targeted tax tweaks.
• The plan pairs deep spending cuts with production support in response to rising borrowing costs, EU deficit limits and Macron’s call for extra military investment.
• France’s public debt hit 113.9 percent of GDP at the end of Q1 2025, intensifying competition with Germany for euro-area funding as interest rates rise.
• La France insoumise and Rassemblement national have vowed motions of censure, setting up a high-stakes parliamentary showdown this autumn.