French PM Proposes Austerity, New Tax, Holiday Cuts

French Prime Minister François Bayrou has proposed abolishing two public holidays and introducing a new tax on top earners as part of a plan to reduce France’s budget deficit to 4.6 percent of GDP next year. The proposal aims to cut spending by €43.8 billion in 2026 and includes freezing pension and welfare payments at 2025 levels. No specific holidays have been named for elimination yet, though previous attempts to cut holidays have faced public backlash. The measures are presented as necessary collective sacrifices to restore public finances, but strong opposition is expected from both the public and within parliament. The plan also includes increased defense spending and other austerity steps. Parliamentary debates are scheduled for the autumn, with the risk of government collapse if the plan is rejected.