French PM looks for alternative solutions to protect budget during holidays

Lecornu, appointed by President Emmanuel Macron to replace François Bayrou, who lost a vote of confidence in parliament, faces a difficult task - convincing the fragmented lower house to restore the state’s finances. Friday’s decision by Fitch Ratings to downgrade France’s credit rating from AA- to A+ only highlighted the country’s financial difficulties.

"I hear what our citizens say: they want work to pay," Lecornu said.

His predecessor, Bayrou, proposed cutting expenditures by €44 billion and raising taxes to reduce the budget deficit from 5.4% of GDP in 2025 to 4.6% in 2026, including by cutting two public holidays to boost the competitiveness of the French economy.

Lecornu emphasized that France must continue to reduce the deficit while dispelling rumors that the IMF is at the door of the Ministry of Finance.

The prime minister stressed that the situation could not be left unchanged.

The new government plans to hold consultations with trade unions and opposition factions, including the Socialists, Communists, and Greens, to find a compromise solution for the state budget. Lecornu acknowledged that it will be difficult but necessary.

So far, lawmakers have not shown readiness for a quick compromise. Some parliamentary blocs, including the far-right and far-left, are calling for early elections or President Macron’s resignation, which he has ruled out.

Acting Finance Minister Éric Lombard noted that the previously proposed €44 billion in cuts must be redistributed under the prime minister’s new plan. The wealthiest should contribute more to budget consolidation through taxation on savings and some assets, without additional business taxes, Lombard emphasized in an evening broadcast on France 2.

The UK and France want to strengthen NATO’s eastern flank with Rafale and Eurofighter fighter jets.