French PM Bayrou Proposes €43.8B Cuts to Reduce Deficit by 2029

French Prime Minister Francois Bayrou has announced a stringent budget plan aimed at reducing France's soaring deficit, which stood at 5.8% of GDP in 2024, nearly double the EU's 3% limit. His comprehensive measures include approximately €40 billion in spending cuts and tax hikes for 2026, such as freezing welfare spending and tax brackets, cutting 3,000 civil service jobs, capping health spending growth, and eliminating two public holidays to increase working days. Bayrou emphasized the necessity for all citizens to contribute to restoring fiscal balance to avoid credit rating downgrades and rising interest costs. The plan faces fierce opposition from left-wing politicians and a fragmented parliament, with potential no-confidence motions threatening government stability. Despite the political risks, Bayrou is committed to bringing the deficit down to 4.6% by 2026 and to the EU's 3% threshold by 2029 to prevent a financial crisis akin to Greece's experience. The government also aims to boost industrial growth and job creation alongside debt reduction efforts amid rising public debt and interest payments.