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France’s Prime Minister Fran\u00e7ois Bayrou has outlined plans to cut \u20ac43.8 billion from the national budget, warning that debt presents a “mortal danger” for the country.<\/p>\n
The cuts involve reducing the number of people employed in the civil service and a so-called “solidarity contribution” for “the wealthiest”, as well as scrapping tax breaks for business expenses for pensioners.<\/p>\n
He also proposed getting rid of two public holidays, citing Easter Monday and 8 May as possible contenders to be scrapped.<\/p>\n
Bayrou said that would make it possible to increase productivity without raising taxes or VAT.<\/p>\n
May 8 has historical significance in France and across Europe as it marks the surrender of Nazi Germany in 1945 and the end of World War II in Europe.<\/p>\n “It’s the last stop before the cliff, before we are crushed by the debt,” Bayrou told MPs, saying that debt is increasing by \u20ac5,000 every second.<\/p>\n “It’s late but there is still time,” he added.<\/p>\n He said the French shouldn\u2019t forget the financial woes Greece experienced more than a decade ago when it went through a full-blown debt crisis and needed multiple international bailout packages and years of austerity to get back on its feet.<\/p>\n France’s public deficit hit 5.8% of GDP in 2024, totalling \u20ac168.6 billion, a figure well above the maximum allowed by EU rules.<\/p>\n In his announcement, Bayrou outlined significant budget cuts with the aim of slashing tens of billions of euros, aiming to bring the deficit down to 5.4% of GDP this year and 4.6% in 2026.<\/p>\n Related<\/b><\/p>\n He is hoping the cuts will bring the deficit to below the 3% threshold set by the EU by 2029.<\/p>\n President\u00a0Emmanuel Macron has tasked his prime minister with repairing public finances with the 2026 budget after the snap election he called last year resulted in a hung parliament too divided to tackle spiralling spending.<\/p>\n Following the recommendations of Macron and citing the situation in both Ukraine and the Indo-Pacific region, Bayrou said no cuts would be made on national defence spending.<\/p>\n \u20ac3.5 billion will be included in the 2026 budget, with a further \u20ac3 billion in 2027.<\/p>\n<\/p><\/div>\n