Overview

• Bayrou announced €43.8 billion in deficit-reduction measures aimed at lowering the budget shortfall to 4.6% of GDP by 2026 and to 3% by 2029.
• The framework includes freezing most state and local spending except defence, eliminating two national public holidays and cutting 3,000 civil service jobs.
• Revenue measures feature a €5 billion cap on health spending growth, tighter tax loophole crackdowns, a solidarity surcharge on top earners and a new parcel tax.
• Opposition parties from the left and right have threatened a no-confidence motion when the full budget bill is debated after the summer recess.
• President Macron’s demand for an additional €6.5 billion in defence outlays over two years has added pressure to Bayrou’s narrow fiscal margin.