Monday, 25 May 2026
French PM proposes axing two public holidays to address budget shortfall
PARIS – In a bid to shore up France’s finances, Prime Minister Francois Bayrou on Tuesday unveiled a package of austerity measures, including the elimination of two public holidays and a freeze on most government spending, according to Reuters.
Bayrou’s fiscal blueprint calls for holding welfare payments and tax brackets at their 2025 levels in 2026—without inflation adjustments—a detail that drew swift criticism from both left-wing and far-right opponents. Notably, defense spending will be exempt from the freeze and will see an increase.
Last year, France’s budget deficit ballooned to 5.8% of the country’s GDP, nearly twice the European Union’s 3% threshold. Political instability, marked by four consecutive governments, left leaders unable to counteract a sharp drop in tax revenues coupled with a surge in state spending for the second consecutive year.
“Everyone will have to contribute to this effort,” Bayrou declared at a two-hour press conference attended by journalists, lawmakers, and ministers. He warned that public debt poses a “mortal danger” for France and stressed the urgent need for decisive action.
Bayrou anticipates strong opposition to the welfare freeze and the proposed scrapping of two public holidays—likely Easter Monday and May 8, which marks the end of World War II in Europe. He argued the month of May is overloaded with holidays and insisted that French workers must return to work to boost productivity. According to Bayrou, these measures could generate additional billions of euros in state revenue by increasing overall output.
“This government would rather target the French people, workers, and retirees than root out waste,” far-right National Rally leader Marine Le Pen posted on X, vowing to back a motion of no confidence if Bayrou doesn’t change course.
Condemnation came from the left as well. Socialist leader Oliver Faure, whose party previously supported Bayrou’s 2025 budget, called the plan “not a recovery program, but a demolition plan for the French (social) model.”
As a seasoned centrist, Bayrou faces an uphill battle getting his proposed cuts past France’s divided parliament, risking a no-confidence vote similar to the one that ousted his predecessor in December over next year’s budget.
The likelihood of such a challenge may increase when the detailed budget bill is presented to lawmakers in October.