The French Government will make an adjustment of EUR 43.8 billion in the 2026 budget
Prime Minister Bayrou has announced notable measures such as freezing pensions, reducing public employment and social and health spending, and reducing holidays.
French Prime Minister François Bayrou announced on Tuesday a four-year plan to adjust state budgets with the aim of reducing spending and increasing revenue.
To this end, it has highlighted measures such as the freezing of pensions, the reduction of public employment or the reduction of social and health expenditure.
The French Prime Minister has made a special speech to the Head of Government and Parliament announcing the plan.
With regard to income, it has announced that it will implement a 'solidarity contribution' for the people with the highest incomes, and has announced that it will strengthen the fight against tax fraud, adding that a special effort will be made to recover the money lost from these frauds.
Another striking measure is the suppression of two holidays. They currently have 11 holidays in France and among those with options for withdrawal, he said, are Easter Monday and May 8. "We need to increase our national production. We don't produce enough, "he says.
The Prime Minister has stressed that the rapid increase in public debt must be addressed. In fact, following the current pace, debt repayment would reach EUR 100 billion by 2029, making it the biggest part of the budget.
French public debt closed the first half of this year at €3.3458 billion, representing 114% of the state's GDP.
Bayrou has ensured that this debt increases at a rate of EUR 5 000 per second, an increase of EUR 150 billion per year. This situation is, in Bayrou's view, "unbearable."
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