Reducing national holidays suggested by French Prime Minister to reduce government debt
France has unveiled a bold plan to reduce its public deficit by €43.8 billion in 2026, aiming to bring the budget deficit down from 5.8% of GDP in 2024 to 4.6% of GDP in 2026 [1][2]. The proposals, outlined by Prime Minister François Bayrou on July 15, 2025, include a series of austerity measures designed to control public spending and cut debt.
Key elements of the French government's plan include the elimination of two public holidays, with Easter Monday and May 8 (Victory in Europe Day) mentioned as potential candidates. This move is intended to increase productivity without raising taxes or VAT [1][3][4]. Additionally, the government aims to reduce the number of civil service employees and introduce a "solidarity contribution" targeting the wealthiest citizens [3].
Other measures include scrapping tax breaks on business expenses for pensioners and cutting healthcare spending [2][3]. The government also plans to freeze tax thresholds and pensions, and has proposed an additional €3.5 billion in defense spending for 2026, reflecting military and international tensions [1].
The government frames this as a two-phase approach: "stopping the debt" and "moving forward with production," with an emphasis on protecting work and business competitiveness [1].
The plan has sparked concerns and significant debate. The austerity measures, especially the elimination of historically significant public holidays like May 8, have been controversial given their cultural importance [3]. Political uncertainty is pronounced, with Bayrou facing a tough parliamentary environment with a fragmented government, and there is a real risk of censure and a snap election during the autumn budget showdown when parliament reconvenes in September [2].
Despite the challenges, it is considered plausible that the broad contours of the budget may be adopted, although the political path is narrow and unstable, potentially impacting economic confidence and growth prospects [2]. Economic forecasts are cautious, with expected GDP growth slowing to around 0.5% in 2025 amid fiscal consolidation, consumer caution, and political uncertainty [2].
Bayrou has warned that debt presents a "mortal danger" to France, highlighting a sense of urgency. He also cautioned against ignoring the risks of a crisis similar to Greece’s debt crisis in the past [3]. Bayrou expects the budget deficit to fall below the 3% required by EU rules by 2029.
Notably, the French defense budget for 2025 is 50.5 billion euros, and President Emmanuel Macron has requested an additional 3.5 billion euros for military spending next year due to rising international tensions [1]. Italy, meanwhile, has 12 national holidays, while Germany currently has 9, with federal states allowed to add more.
The proposed reduction in national holidays could add "several billions of euros" to the state's coffers, according to Bayrou [1]. France's debt stands at 114% of GDP, the largest debt mountain in the EU after Greece and Italy, exceeding the 60% allowed under EU rules [1].
The plan has not been without opposition. The far-right National Rally leader, Jordan Bardella, has protested against the proposed measures, calling them a direct attack on French history, roots, and labor [1]. Jean-Luc Melenchon, a leftist firebrand, has called for Bayrou's resignation, while Marine Le Pen, the leader of the National Rally's parliamentary group, has threatened to vote for a no-confidence motion if Francois Bayrou does not revise his plan [1].
In summary, France’s approach to controlling its public deficit and cutting debt is centered on significant budget cuts, austerity measures, and increasing productivity through controversial approaches like cutting public holidays. The proposals are politically sensitive and face potential resistance, leading to a fragile economic and political outlook going forward [1][2][3].
- Marine Le Pen, the leader of the National Rally's parliamentary group, has threatened to vote for a no-confidence motion if François Bayrou, the Prime Minister, does not revise his deficit reduction plan.
- The elimination of some public holidays, such as Easter Monday and May 8 (Victory in Europe Day), is part of the French government's plan to increase productivity without raising taxes or VAT.
- Despite the French government's efforts to control its public deficit and reduce debt, the austerity measures, particularly eliminating historical public holidays, have been controversial due to their cultural significance.
- The French defense budget for 2025 is 50.5 billion euros, and President Emmanuel Macron has requested an additional 3.5 billion euros for military spending next year due to rising international tensions.
- The Italian defense budget is considered significant, with 12 national holidays, while Germany currently has 9, with federal states allowed to add more, compared to France's proposed reduction in national holidays to save several billion euros.
