Overview

• Prime Minister François Bayrou has proposed a referendum to gain public approval for a €40 billion austerity plan targeting deficit and debt reduction.
• The plan seeks to lower France's public deficit from 5.4% of GDP this year to 4.6% next year, with a goal of reducing it below 3% within four years.
• Bayrou views the referendum as a way to bypass legislative gridlock in the National Assembly, where his government lacks a majority.
• Under Article 11 of the French Constitution, only President Emmanuel Macron can authorize the referendum; Macron has expressed reservations, pending further details of the plan.
• This would be the first budget referendum in France's Fifth Republic, drawing support from Bayrou’s centrist allies but criticism from opposition parties for its potential political risks.