The Prime Minister has drawn up a catalog of measures geared toward massively lowering the general public deficit. Everyone must make an effort to attain 43.8 billion in financial savings by 2026.
François Bayrou’s said goal is to cut back the deficit from 5.4% of GDP in 2025 to 4.6% in 2026, with a trajectory in direction of 3% in 2029 with a view to meet European standards. This represents a complete budgetary effort of €40 to €44 billion, together with further protection prices of round €43.8 billion.
A clean yr and tightening of the screws in every single place
Among the measures advisable by Bayrou: a freeze on will increase in 2026: pensions, social advantages, earnings tax and CSG will stay on the similar degree as in 2025 – a brief collective effort estimated at €7 billion.
A rebalancing of social spending, together with €5 billion in deliberate financial savings on healthcare expenditure:
- Doubling the medical deductible (from €50 to €100),
- Reduction of sick depart deemed abusive,
- Re-examination of reimbursements excluding long-term circumstances.
Civil service & job cuts
The Prime Minister’s plan requires 3,000 job cuts within the civil service, because of the non-replacement of 1 in three retiring civil servants.
The improve within the protection finances offers for a surplus of €3.5 billion for protection in 2026 (and €3 billion in 2027), lined by the general financial savings plan.
Deletion of public holidays
Bayrou proposes to abolish two public holidays, Easter Monday and May 8 (Victory Day 1945), with a view to generate a number of billion euros.
Fight in opposition to fraud and tax niches
To obtain additional financial savings, the federal government will step up the battle in opposition to tax, social and well being fraud. A invoice shall be tabled within the autumn to enhance fraud detection and restoration. Other measures embrace the elimination of tax niches deemed inefficient, and the introduction of a flat-rate tax to interchange the ten% deduction on pensions for low-income pensioners.
Bayrou’s plan additionally requires the creation of a “solidarity contribution” for the best incomes, the contours of which shall be decided by parliamentary commissions.
Justification and political context
François Bayrou emphasised France’s extreme dependence on public spending (57% of GDP) and the pressing have to right this drift to keep away from a Greek disaster. He warned, “We’ve gotten used to the deficit… each second, France’s debt will increase by €5,000.”
These measures mark some of the rigorous budgetary efforts of the Fifth Republic. They are nonetheless hotly contested, and are prone to gasoline a movement of censure, significantly within the face of a Parliament with out an absolute majority.
“A speech of reality”
“There’s no braveness in promising what you possibly can’t finance. Courage means saying that we should collectively right a behavior that’s deadly for the nation”, explains François Bayrou, who assumes a discourse of reality, even when it means going in opposition to fast recognition. He claims a republican strategy to accountability, whereas getting ready public opinion for short-term sacrifices “to avoid wasting the French social mannequin in the long run.”
Political reactions
Rassemblement National (RN)
Marine Le Pen: “We help the necessity to cut back the deficit, however not on the backs of the modest French. The abolition of public holidays and the freezing of pensions are unacceptable.” The RN is threatening to not vote for the finances, and has raised the potential for a movement of censure, though it has not but confirmed this.
Les Républicains (LR)
Éric Ciotti and Bruno Retailleau criticize “a poorly-targeted effort, which avoids actually lowering the variety of civil servants and reviewing public insurance policies.” The LR proposes as a substitute a reform of the State and a discount in native spending.
Nouveau Front Populaire (NFP) – Union of the Left
Jean-Luc Mélenchon (LFI) and Olivier Faure (PS) denounce “an enormous austerity plan”. The NUPES (ex-NFP) is asking for a referendum and is contemplating a movement of censure with different teams.
Horizons and Renaissance (centrists)
Parties near President Macron are cautiously supporting the Prime Minister, however categorical issues concerning the social impression. Some of the Renaissance members spoke off the report of “brave however politically dangerous measures”.
Reactions from unions and employers
Trade unions (CGT, CFDT, FO, UNSA) are calling for a nationwide strike in autumn 2025. The CFDT deplores the dearth of session, though it acknowledges the necessity for a budgetary trajectory. The CGT calls it a “frontal assault on social rights”.
MEDEF and CPME: The employers’ affiliation welcomes the “return to budgetary orthodoxy”, however is worried a few “slowdown in home consumption” as a result of freezing of advantages and tax hikes for high-income earners.
