Lombard: plan includes EUR 4 billion from cutting two public holidays

Lombard: plan includes EUR 4 billion from cutting two public holidays

French Finance Minister Eric Lombard expressed confidence in the government's ability to secure approval for the 2026 budget in parliament. He also hinted at improvements to the plan through discussions with opposition parties, as reported by Bloomberg [2].

In a significant move to address the country's public finances, Prime Minister Francois Bayrou proposed scrapping two national holidays—Easter Monday and May 8, which commemorates the end of World War II. This proposal, part of a broader €43.8 billion ($50.9 billion) effort to plug budget holes, aims to save approximately EUR 4 billion [1].

Bayrou's plan also includes freezing public spending at 2025 levels and introducing a new tax on high earners. The aim is to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029 [3].

Lombard emphasized the importance of addressing the budget deficit, stating, "We will talk to all parties because it is an issue of national interest." He acknowledged the need for consensus and cooperation to ensure the plan's success [2].

The proposal has sparked controversy, with critics arguing that the cuts target workers and retirees. Left-wing and far-right politicians have condemned the plan, with Marine Le Pen calling it an attack on French history and workers, and Oliver Faure labeling it a demolition plan for the French social model [3].

Bayrou, a veteran centrist politician, must navigate the divided parliament to secure support for his cuts. Failure to do so could result in a no-confidence motion, as happened to his predecessor last December over the 2025 fiscal plans [3].

The 2026 budget is critical for France's economic stability, with the country facing the largest budget deficit in the euro zone. The success of Bayrou's plan could significantly impact Macron's legacy and the country's fiscal health.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-15/france-proposes-cutting-two-public-holidays-to-plug-budget-hole
[2] https://www.bloomberg.com/news/articles/2025-07-16/france-s-lombard-says-will-improve-budget-in-opposition-talks
[3] https://www.thedailyherald.sx/business/france-s-pm-wants-to-scrap-two-public-holidays-to-help-fix-government-finances