French Prime Minister Francois Bayrou has unveiled a new set of austerity measures, including a tax hike targeting the wealthiest citizens, as part of broader efforts to reduce the national debt and rein in a substantial budget deficit.
One of the central changes is a revised “solidarity contribution” aimed at high-income earners. The existing levy on individuals earning over €250,000 ($270,000) is expected to be expanded in scope to address a €43.8 billion ($47.5 billion) budget gap. Bayrou emphasized that the burden must be fairly shared, stating, “We must demand less from those who have little and more from those with greater means.”
Last year, France’s deficit climbed to 5.8% of its gross domestic product (GDP), nearly twice the 3% ceiling set by EU rules. Bayrou’s proposals also include the elimination of two public holidays — Easter Monday and May 8th’s Victory Day — to improve national productivity. The move drew sharp criticism from right-wing figure Jordan Bardella, who labeled it “an assault on our traditions and identity.”
Additional spending cuts will impact healthcare budgets and freeze pensions and social benefits at their 2025 rates. Despite these cuts, military expenditures are set to rise, reflecting what the government describes as a response to growing global threats.
France’s defense budget is projected to increase to €64 billion ($69 billion) by 2027 — twice the amount allocated in 2017. President Emmanuel Macron has also proposed an extra €6.5 billion ($7 billion) in military spending over the next two years. A recent government review warns of a possible large-scale conflict in Europe by the end of the decade, citing Russia as a potential risk — an allegation Moscow has dismissed as unfounded and politically motivated.
Public debt in France now stands at around €3.3 trillion ($3.6 trillion), equating to roughly 114% of GDP. Critics from the left argue that the government is placing military growth above social needs. Jean-Luc Mélenchon, head of the La France Insoumise party, called for Bayrou’s resignation, saying the policies represent “unacceptable social injustice.”
Bayrou will need legislative approval before the full fiscal plan is submitted in October.
