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Bayrou Unveils €43.8 Billion Austerity Plan for 2026 Budget

Opposition parties from both left and right plan motions of censure ahead of autumn budget debates.

Overview

  • President Macron’s request for an extra €3.5 billion in defense spending has been built into the framework, raising the savings goal to €43.8 billion to bring the deficit down to 4.6 % of GDP.
  • The plan freezes almost all state expenditure and social benefits at 2025 levels, excluding defense and debt service.
  • A one-in-three nonreplacement rule for retiring civil servants will eliminate 3,000 public-sector positions.
  • Elimination of two public holidays—citing Easter Monday and May 8—could yield several billion euros in additional savings.
  • Revenue measures include doubling the annual medication charge to €100, a solidarity levy on high earners, and an anti-fraud bill scheduled for autumn.