Controversial French Budget 2026 Proposals Spark Economic Concerns
Prime Minister François Bayrou's 2026 budget proposals, including public holiday cuts and pension freezes, spark political backlash and economic concerns.
Key Points
- • €43.8 billion budget plan aimed at reducing public deficit to 4.6% of GDP.
- • Critics highlight negative impacts on households and economic growth, with growth projections at 0.7% for 2025.
- • Pension freezes could lead to annual losses of €350 for retirees, with the Socialist Party threatening censure.
- • Economists warn proposed measures could create substantial shocks to an already fragile economy.
On July 15, 2025, Prime Minister François Bayrou presented a contentious budget plan for 2026, aiming to reduce the public deficit to 4.6% of GDP with a total saving target of €43.8 billion. This proposal has drawn sharp criticisms from various political factions and raised alarms among economists regarding potential negative impacts on the French economy and vulnerable households.
The budget plan controversially includes the removal of two public holidays, specifically Easter Monday and May 8, a move that could lead to an estimated loss of €200 million for the hospitality and restaurant sectors, as highlighted by Catherine Quérard, president of the Groupement des hôtelleries et restaurations de France (GHR). Additionally, the freezing of pensions, which has been condemned by the Socialist Party (PS) as inequitable, stands to affect both lower and higher-income retirees, with a predicted annual loss of €350 per retiring household. Philippe Brun, a PS deputy, has threatened censure against the proposed budget, emphasizing that it fails to address the needs of the working class and retirees.