French premier wants to scrap holidays, freeze spending to slash debt

In order to reduce France’s record national debt, Prime Minister François Bayrou presented a plan to cancel two public holidays, reduce the number of civil servants and merge public authorities.

In addition, public spending, including pension payments and social benefits, should be frozen next year at this year’s level, Bayrou outlined in Paris on Tuesday. Only the defence budget is to be increased by billions.

Bayrou has named Easter Monday and May 8, which commemorates the end of the Second World War and the victory of the Allies over Nazi Germany, as public holidays that could be sacrificed.

The health care system should also become more cost-effective, and action is to be taken against unauthorized sick leave by employees.

All these measures together should enable savings of €43.8 billion ($51.1 billion) for the 2026 budget, Bayrou said.

France must slow down the growth of its public debt burden and increase its productivity, otherwise there is a risk of a sovereign debt crisis like in Greece, he warned as he presented his outline for the 2026 budget.

Public debt has risen to 114% of GDP, noted the prime minister. This makes France one of the worst performers in the eurozone.

The budget deficit is to be reduced from an expected 5.4% in the current year to 4.6% in 2026 and then in stages to 2.8% by 2029, bringing it back below the European limit of 3%.

Bayrou said that his centre-right government was taking a big risk with the austerity measures presented, as it did not have its own majority and was at the mercy of the opposition. However, he said the government must try to free the country from the predicament of debt.

In view of the unclear balance of power in parliament, it is considered likely that the government could fall later this year in a dispute over the budget.