France’s Prime Minister François Bayrou has proposed drastic measures to mend the nation’s budget, including cutting two national holidays. The country faces a Greek-scale financial crisis if it doesn’t act decisively to rein in its ballooning debt and deficit.
The proposal comes after President Emmanuel Macron warned that France’s debt had risen higher than almost every other European country, reaching 114% of gross domestic product. To bring it down, Mr. Bayrou suggests freezing non-military spending, encouraging the French to “work more”, and eliminating “unproductive” state agencies.
Among the proposed cuts are scrapping Easter Monday and May 8, which commemorates the end of World War II in Europe. This would save France billions of euros due to higher production. Mr. Bayrou also proposes capping pension payments, an issue likely to rekindle public protests.
The proposals have already drawn criticism from both sides of the French political spectrum, with threats of a censure motion if they are not revised. France’s deteriorating financial situation has generated concern among investors and credit ratings agencies, with this year’s deficit expected to reach 5.8% of economic output. If left unaddressed, debt interest is set to become the government’s largest expense by 2029, ballooning to €100 billion per year.
Mr. Bayrou warns that France is on a “cliff” and must act now to avoid a debt crisis similar to Greece’s earlier in the century. The proposal also includes plans to ramp up economic production, particularly in defense industries, to help offset declining other sectors. However, this would require increasing the number of people working, partly by tightening the unemployment system.
The move is seen as a last-ditch effort to address France’s financial woes before the country is overwhelmed by debt.
Source: https://www.nytimes.com/2025/07/15/business/france-debt-deficit-spending-taxes.html