French prime minister Francois Bayrou, presented a budget adjustment plan on Tuesday Amazes reaching 43.8 billion euros to reduce the deficitwhile the Gallic country tries to fit an increase in defense expenditure and that contemplates measures such as Pension freezing, reduction of public employees and even the elimination of two holidays.
“Fifty years have passed since our country, in all political spectra, presented a balanced budget. Fifty years since our public spending exceeded income every year. And Little by little, we have become accustomed to this deficit“Bayrou said at the start of his speech in which he has evoked the rescue of Greece during the euro crisis, as well as the crises of” Portugal, Italy or Spain in the early 2010s. “
“We must never forget the story of Greece, or his example,” Bayrou warned, stressing that when a country is forced to borrow to cover daily expenses, pay the pensions or salaries of the officials, it is called “over -indebtedness” and supposes “a curse for families, for companies and for the country.”
“The Greek people, the Greek state, had to make immense sacrifices. They had to cut pensions 30% and salaries 15%,” he recalled, to point out that France must recognize the situation in which it is located, with a debt of more than 3.3 billion euroswhich represents almost 114% of GDP.
In this way, he has warned that, by 2029, “if we do not change anything”, the part of the public spending dedicated to the interest service of the public debt would amount to 100,000 million euros, thus becoming with a difference in the largest item in the state budget.
“This is our moment of truth,” Bayrouu summarized, for whom “this is the last step before the abyss”, since an overwhelming volume of debt represents “a deadly danger” for any country.
“For a long time we do not see the risk, we accept it, we turn a blind eye, and one day we are trapped and we can no longer pay what we owe. Then the crisis arrives. Your country is cornered, harassed, and you can no longer escape from the trap. A country that does not arrive at the end of the month,” he said.
In this sense, Prime Minister Galo defended the need to act quickly and firmly, but also with justice and equity, as well as to deal with the new needs posed by geopolitical reality and the return of war to Europe, which will require the Gallic country to strengthen the capacity of national defense against the future, against new threats and against new weapons that with additional 3.5 billion in investments in 2026 and another 3,000 million in 20,000 million in 20,000 million in 20,000 million in 20,000 million in 20,000 million in 20,000 million.
The keys to the plan
In his speech, Bayrou has explained that it is a multiannual plan to restore debt balance in four years, between 2026 and 2029, defending that it is a “realistic” plan, with a “attainable” objective.
“Our commitment to the French people is quite simple: stop the increase in debt in four years“He said in reference to the trajectory that aims to reduce the deficit to 5.4% of GDP by 2025 from almost 6% and that he plans to approach the threshold of 2.8% in 2029, a level from which” the debt stops increasing. “
In this regard, he stressed that, in addition to having “the growth tide to straighten the course”, The plan requires a second principle, in reference to the importance of stabilization and reduction of public spending, adding that everyone must participate in the effort.
The first step indicated by Bayrou will occur in 2026, by the time the goal of reducing the annual deficit to 4.6% of GDP, including as the first rule “not spending more in 2026 than 2025”, with the exception of the increase in debt load and additional expenditure in the budget of the Armed Forces.
To achieve this goal, Bayrou warned that certain projects can be delayed a few months, in addition to The State will seek to reduce its costs by cutting the number of public sector jobs by 3,000 places from 2026as well as greater efficiency in health spending, including the purchase of medicines and equipment, as well as labor casualties, in addition to freezing public salaries and pensions, as well as income tax and general social contribution.
“We must share a ‘year blank’ in 2026”, The Gallic Prime Minister in reference to the fact that the benefits and each pensioner will not be uploaded “will have exactly the same amount of pensions” as in 2025 in what he has defined as “a collective effort” that concerns all the French. “Do not spend more in 2026 than in 2025,” he said.
Apart from the measures to “break the spiral of the debt,” the politician also announced actions aimed at promoting activity and productivity in the country.
“Just as our goal is to reduce the 3% budget deficit by 2029, we must reduce our commercial deficit, which will imply strengthening our productive base and supporting our companies throughout France,” he said.
Two holiday elimination throughout the country
Among the measures announced to “reconcile” France with work, Bayrou proposes “The elimination of two holidays throughout the country“, pointing out” as an example “that on Easter Monday and May 8 lose their status as national parties.
