France's Prime Minister Proposes Controversial Public Holiday Cuts Amid Budget Crisis

François Bayrou, France's Prime Minister, has put forward a contentious plan to eliminate two public holidays as part of sweeping measures aimed at tackling the country's growing deficit, revitalizing the economy, and averting a potential debt crisis. In his outline of the 2026 budget, presented on Tuesday, Bayrou suggested scrapping Easter Monday and May 8, the day commemorating Victory Day that marks the end of World War II, while remaining open to other alternatives. The centrist leader emphasized the need for the entire nation to work harder to enhance the overall economic activity and facilitate improvements in France's fiscal situation. 'Everyone will have to contribute to the effort,' he stated, highlighting the urgency for collective action as the country grapples with a public deficit running at 58% of GDP. This urgent fiscal challenge necessitates that France bring its deficit under the 3% figure mandated by EU regulations, alongside managing a staggering €3.3 trillion public debt, which could soon become the nation's largest budgetary expenditure, with annual interest payments forecasted to reach €60 billion. Bayrou described the monumental debt as a 'mortal danger' for a nation precariously positioned on the edge of fiscal disaster, with a chronic reliance on public spending. He laid out plans to reduce the budget by €438 billion, striving to lower the deficit to 4.6% next year and hitting the 3% target by 2029. Additional measures proposed include a widespread freeze on government spending except for debt servicing and the defense sector—a sector President Emmanuel Macron has insisted on increasing by €35 billion next year, with further increases anticipated in 2027. The proposed budget reductions will also involve maintaining pensions at their 2025 levels, capping welfare expenditures, and cutting healthcare funding by €5 billion. Additionally, salaries for civil service and governmental agency employees would be frozen, and reductions in public sector job numbers are also planned. The idea of eliminating public holidays has sparked significant backlash, as many view it as an attack on the country's history and cultural roots. Jordan Bardella, leader of the far-right National Rally (RN), the largest party in parliament, labeled the proposal a provocation, asserting that no RN member would tolerate such an infringement. Other opposition leaders echoed this sentiment; Fabien Roussel of the French Communist Party described the plan as an 'organized holdup', while Jean-Luc Mélenchon from the radical left France Unbowed (LFI) called for Bayrou’s ouster, denouncing the proposed cuts as destructive. Boris Vallaud, a member of the Socialist Party, criticized the budget as 'brutal and unacceptable,' arguing that the demands placed on the less fortunate are disproportionate compared to those imposed upon the affluent. Bayrou's path forward remains uncertain; following Macron's decision to call a snap election last year, the resulting hung parliament has left him lacking sufficient votes to pass his budget without collaboration from either the left or the right, both of which vehemently oppose his proposals from different standpoints. Without parliamentary agreement, the seasoned Prime Minister could face a no-confidence motion as early as October, similar to the one that brought down his predecessor Michel Barnier, when his detailed budget bill is expected to be scrutinized by parliament. Related Sources: • Source 1 • Source 2