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Bayrou Unveils €43.8 Billion Austerity Plan to Tackle France’s Deficit

The proposal has drawn cross-spectrum opposition, risking a parliamentary no-confidence vote when the detailed bill goes before lawmakers in autumn

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A view shows the Bercy Economy and Finance Ministry building in Paris, France, July 15, 2025. REUTERS/Abdul Saboor
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Overview

  • The government’s 2026 budget framework aims to secure €43.8 billion in deficit reduction through frozen social benefits, capped tax brackets and an overall spending freeze.
  • Bayrou plans to cut 3,000 civil service positions next year and suspend replacement of one in three retirees to curb public payroll costs.
  • The proposal includes scrapping Easter Monday and ory in EuroEurope Day on May 8, which is projected to yield several billion euros in additional revenue.
  • Defence spending is exempt from austerity measures, with a planned increase of around €6.7 billion to address security threats.
  • Unions and parties across the political spectrum have denounced the plan, and a no-confidence vote looms when the detailed budget bill reaches parliament this autumn.