In a move that has already stirred significant controversy, French Prime Minister François Bayrou has unveiled a sweeping €44 billion fiscal consolidation plan aimed at reducing the country’s ballooning deficit.
The plan, announced on Tuesday at a press conference in Paris, includes sharp spending cuts, higher taxes, and the elimination of two national holidays, marking one of the most ambitious—and politically risky—fiscal reforms in recent French history.
Labelled as “our moment of truth” by Bayrou, the proposal is framed as a necessary response to what he described as “unsustainable fiscal irresponsibility.” The Prime Minister warned that without immediate and drastic action, France could spiral into a Greece-style debt crisis within the next decade.
“This is a turning point,” Bayrou declared. “We can no longer spend what we do not earn. Either we act now, or we face financial collapse.”
At the core of the plan are significant cuts to pensions and welfare payments. Unemployment benefits will be scaled back, while various existing support schemes will be consolidated into a single, capped payout for low-income earners.
A complete spending freeze across most government departments—an initiative dubbed année blanche—will be introduced for 2026. Only military spending will be exempt, with President Emmanuel Macron supporting a 10% increase in defence outlays due to mounting security concerns linked to Russia.
One of the most symbolic and controversial elements of the proposal is the scrapping of Easter Monday and Victory in Europe Day as national holidays.
Bayrou claims this move could inject up to €4.2 billion in economic activity by reducing non-working days. The decision will likely face strong resistance from unions and cultural groups.
A new “solidarity contribution” targeting France’s wealthiest households is also on the table. Details remain vague, but the tax is expected to affect individuals with assets above €2 million.
The political fallout has already begun. Bayrou’s centrist coalition lacks an outright parliamentary majority, and opposition parties across the spectrum have voiced strong resistance. Several lawmakers have already threatened to initiate a no-confidence motion, potentially triggering a government crisis.
Public sector unions are planning protests, while critics argue that the burden of reform falls disproportionately on middle- and low-income families. “This is austerity dressed up as responsibility,” said Socialist MP Marine Tardieu. “The French people are being asked to pay for the mistakes of the elite.”
As France braces for a year of contentious debate, Bayrou’s plan may define the legacy of Macron’s second term—and the future of France’s fiscal sovereignty.