French Prime Minister François Bayrou has presented the broad outlines of a budget recovery plan that he considers “vital” to prevent public debt from spiralling out of control.
The minister aims to achieve savings of €43.8 billion starting in 2026. One of the key measures is a “blank year,” i.e., freezing tax rates, social benefits and pensions in 2026 at 2025 levels. The stated goal is to keep spending inflation in check without raising taxes.
“These are balanced, comprehensive and necessary efforts,” François Bayrou said.
The prime minister will also address civil service issues. 3,000 jobs could be lost by 2026. In addition, one in three civil servants who retire will not be replaced.
Another proposed measure is the abolition of two public holidays. There are 11 in total in France. Bayrou believes that these could be May 8 (Victory Day) and Easter Monday. According to the Prime Minister, this would increase labour productivity without raising taxes or VAT.
The head of government also spoke about introducing a special solidarity contribution for the wealthiest taxpayers. It is not yet clear what the income threshold will be and whether this measure will be permanent or temporary. He also promised to step up the fight against certain tax loopholes. Bayrou defended these measures, warning that the budgetary situation was “very close to a turning point,” with the country’s debt exceeding €3.3 trillion (113% of GDP).
Following the recommendations of French President Emmanuel Macron and citing the tense situation in Ukraine and the Indo-Pacific region, the Prime Minister announced that the savings would not affect national defence, and that the country’s military budget would be increased by €3.5 billion in 2026 and by a further €3 billion in 2027. The opposition is threatening to bring a vote of no confidence against the government during the autumn budget vote.
French MPs slam Bayrou
Bayrou’s decisions have been met with a barrage of criticism from French MPs.
Nicolas Dupont-Aignan, leader of the party Debout la France (France Arise), wrote on X:
“This morning, all the newspapers are still listing the same austerity measures that will affect the French people. The senseless waste that would have made it possible to find the missing 40 billion will NEVER be touched.
- Cut the 16 billion paid to the EU next year? (+ 6 billion in 2026!), NO.
- Cut the 15 billion paid to Ukraine for the purchase of American weapons? NO
- Cut the 6 billion thrown away on Chinese and German wind turbine manufacturers? NO
- Destroy millions of fake medical cards that cost us 15 billion? NO.”
Jean-Luc Mélenchon, leader of France Unbowed (LFI), commented on the innovations on X:
“Is the social cruelty of the Bayrou plan understood by its author? The list of dispossessions of our people’s heritage is equal to that of which the richest are exempt. Symbolically, the two cancelled public holidays are equal to the revenue from the wealth tax that Macron refuses to reinstate… All government agencies will also be subject to Trump-style cuts. Finally, this plan has no basis: not a word about the climate crisis or measures to protect the population. All this deserves to be censured without illusions or empty talk. The RN and PS must take stock of their pact of non-censorship: Bayrou and his plans are still in force thanks to them. Now he must be driven out.”
Jean-Luc Mélenchon also added:
“Bayrou further exacerbates the absurdity of Macron’s policy: destroy the state and public services to open up space for the market. Make the majority pay to save the very rich. Thus, the race towards economic, financial and social collapse must continue, to the detriment of all. Beware, we are approaching the point of no return. Destruction and injustice can no longer be tolerated. Macronism must be stopped immediately. Bayrou must go.”
