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20h ago

Bayrou Unveils €43.8B Austerity Plan, Proposes Cutting Two Public Holidays

Parliamentary tolerance will determine whether his minority administration survives threats of no-confidence over the controversial deficit measures

Image
A view shows a beach with deckchairs and parasols on a sunny summer day on the Promenade des Anglais in Nice, France, July 8, 2025. REUTERS/Kevin Coombs/File Photo
A banner which reads "Successive budget cuts' is seen on the ground during a demonstration organised by the CGT Spectacle labour union to denounce budget cuts in the cultural sector, in Avignon, France, July 16, 2025. REUTERS/Manon Cruz

Overview

  • The 2026 budget blueprint seeks €43.8 billion in savings by eliminating Easter Monday and Victory in Europe Day and freezing most non-defence spending.
  • Measures include cutting 3,000 civil service positions, capping annual pension and welfare adjustments, and reducing healthcare expenditure by €5 billion.
  • Officials aim to lower the budget deficit from 5.8% to 4.6% of GDP next year to comply with EU fiscal rules and curb escalating interest payments.
  • Leaders of National Rally and La France Insoumise have both pledged no-confidence motions in response to what they label disproportionate sacrifices.
  • Bayrou’s minority government must secure backing from rival parties or face a political showdown when the detailed budget bill is debated in October.