Overview

• Lecornu said he will withdraw the proposal to abolish two public holidays and will seek alternative ways to balance the 2026 budget.
• Planned measures under review include decentralisation, slimming the state administration, merging or abolishing agencies, and ending lifetime privileges for former ministers.
• Fitch downgraded France’s sovereign rating to A+ with a stable outlook, citing political instability and difficulties assembling a credible budget.
• Lecornu warned that higher borrowing costs are already weighing on public finances and will affect households and businesses.
• The change of course follows the collapse of François Bayrou’s government after a no-confidence vote over a €44 billion savings plan that triggered protests.