French Prime Minister Bayrou proposes cuts to two public holidays to reduce national deficit

French Prime Minister François Bayrou outlined plans to cut 43.8 billion euros from the national budget, warning that debt poses a “fatal danger” to the country.

The cuts involved reducing the number of people employed in civil servants, as well as the “richest” so-called “solidarity donations” and the elimination of tax breaks for business expenses for pensioners.

He also proposed to get rid of two public holidays, citing the possibility of Easter Monday and May 8.

Bayrou said this would make it possible to increase productivity without increasing taxes or VAT.

May 8 is historic in France and throughout Europe, as it marks the surrender of Nazi Germany in 1945 and the end of World War II.

“This is the last stop in front of the cliff,” Bayrou told MPs.

“It’s already late, but there’s still time,” he added.

He said the French should not forget that the financial hardship more than a decade ago experienced a mature debt crisis, requiring multiple international bailout packages and years of austerity to get back on their feet.

France’s public deficit reached 5.8% of GDP in 2024, totaling €168.6 billion, the largest number allowed by EU rules.

Bayrou outlined a significant budget cut in the announcement, aiming to cut tens of thousands of euros, aiming to reduce the GDP deficit to 5.4% this year and to 4.6% in 2026.

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He hopes that the cuts will increase the deficit to 2029 by the EU’s 3% threshold set by 2029.

President Emmanuel Macron, who oversees his prime minister’s budget for public finances with a 2026 budget after a quick election last year, has left an open parliament too divided to deal with spiral spending.

Following Macron’s advice and citing the situation in Ukraine and the Indo-Pacific, Beiru said defense spending will not be cut.

The budget for 2026 will include 3.5 billion euros and a further 3 billion euros in 2027.