Quote from Alex bobby on July 16, 2025, 5:37 AM

French PM François Bayrou Proposes Slashing Two Public Holidays to Tackle Soaring National Deficit

France’s ballooning public deficit has prompted a dramatic response from newly appointed Prime Minister François Bayrou. In a bold—and controversial—move, Bayrou has proposed eliminating two public holidays to help reduce the deficit without raising taxes. The proposal comes as part of a sweeping plan to cut €43.8 billion from the national budget in an effort to bring France's finances back in line with European Union (EU) rules.

A Budget in Crisis

France’s public deficit reached 5.8% of GDP in 2024, totalling a staggering €168.6 billion—well above the 3% maximum allowed under the EU’s Stability and Growth Pact. The country’s national debt continues to climb by €5,000 every second, a figure Bayrou cited to drive home the urgency of the situation. "It's the last stop before the cliff, before we are crushed by the debt," he told lawmakers during a tense parliamentary session.

The prime minister warned that if decisive action isn’t taken now, France could face a fiscal crisis akin to Greece's 2010 debt meltdown, which triggered years of austerity and international bailouts. “It’s late,” Bayrou admitted, “but there is still time.”

What’s on the Chopping Block?

Bayrou’s proposal includes a range of austerity measures, but the most controversial by far is the suggestion to abolish two public holidays: Easter Monday and May 8, the latter of which commemorates the end of World War II in Europe.

The rationale? Bayrou believes eliminating the two days would boost national productivity without the politically explosive move of raising income taxes or value-added tax (VAT). He argues that such a step is a small but effective way to reduce government expenditure and improve economic output. “We need solutions that unite,” he said, “not divide the nation further.”

However, the move is already drawing sharp criticism from historians, trade unions, and political opponents. May 8 is a deeply symbolic date for France and Europe, marking the surrender of Nazi Germany and the end of World War II in 1945. Removing it from the national calendar would be seen by many as an affront to collective memory and historical duty.

Additional Measures: Who Pays?

Beyond the holidays, Bayrou outlined other cost-cutting measures:

• Reducing civil service numbers to trim government payrolls.
• Introducing a “solidarity contribution” targeting the wealthiest citizens.
• Eliminating tax breaks on business expenses for pensioners.

While Bayrou has emphasised that these measures will be implemented in a way that “protects the most vulnerable,” critics argue that middle-income earners and public sector workers may bear the brunt of the cuts.

President Emmanuel Macron, who appointed Bayrou following last year’s snap election that led to a hung parliament, has made fiscal reform a top priority. With the legislature too fragmented to pass sweeping tax reforms, Bayrou’s approach aims to work within the constraints of political gridlock while restoring investor confidence.

A Balancing Act on Defence

In contrast to the sweeping domestic cuts, France’s defence budget remains untouched. Citing increasing geopolitical instability in Ukraine and the Indo-Pacific region, Bayrou announced that national defence would continue to receive strong investment. The 2026 budget will include an additional €3.5 billion for defence, with another €3 billion earmarked for 2027.

“Defence is not an area where we can afford to fall behind,” he said, stressing that security concerns in Europe and Asia make continued military funding non-negotiable.

Looking Ahead: Targets and Timelines

Bayrou’s target is to reduce the public deficit to:

• 5.4% of GDP in 2025
• 4.6% in 2026
• Below the EU threshold of 3% by 2029

The road to fiscal recovery will be long and politically difficult. Trade unions have already threatened protests if public holidays are scrapped, while business leaders remain cautious about the implications of changes to tax structures and labour laws.

Conclusion: A Calculated Gamble?

Prime Minister Bayrou’s proposal to scrap two public holidays is an audacious move intended to signal that France is serious about fiscal discipline. But it’s also a political gamble that could alienate large swaths of the population, especially if citizens perceive the cuts as symbolic rather than effective.

At a time when French voters are deeply divided and many are still reeling from the political aftermath of the snap election, Bayrou’s success may hinge on his ability to strike a delicate balance: slashing spending without igniting social unrest, and boosting productivity without compromising France’s cultural and historical identity.

One thing is clear—the days of ignoring the deficit are over. Whether or not Easter Monday and May 8 survive in the French calendar, Bayrou has made it clear that painful choices lie ahead.

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French PM François Bayrou proposes cutting two public holidays and slashing €43.8B from the budget to reduce France’s growing national deficit. Here's what it means.