Paris – French Prime Minister Francois Bayrou announced that negotiations to eliminate two national holidays must be concluded by September 30 to address ongoing operating deficits, reports 24brussels.
This initiative, included in a budget action plan, proposes the removal of Easter Monday and Victory Day holidays in a bid to alleviate a projected budgetary shortfall of €43.8 billion by 2026. The plan has sparked significant controversy, facing opposition from unions, both left and far-right political factions, and segments of the public, as debates continue regarding which holidays may be cut or substituted.
The proposal forms part of broader austerity measures aimed at managing France’s escalating public debt. Bayrou emphasized the need for societal sacrifice to avert a debt crisis, likening the current fiscal challenges to those experienced during Greece’s financial turmoil. He has urged citizens to contribute to deficit reduction through reduced spending, delayed pension increases, and cuts to public sector employment.
Bayrou previously described the fiscal situation as ‘like Gruyere cheese, full of holes,’ asserting that reducing holidays could stimulate economic growth. However, various recent studies suggest that the implications may be more complex.
The government intends to consult with unions and other parties before finalizing negotiations by the end of the month. Bayrou has called on union representatives to submit their preferences for open negotiations by September 1, opening the door for discussions regarding the proposed holiday eliminations.
Why does Bayrou want to cut two French holidays?
The upcoming proposal is a component of a comprehensive set of spending control initiatives aimed at addressing France’s mounting public debt. Bayrou asserted that sacrifices are essential to prevent a deeper financial crisis. He proposed extending pension growth timelines and reducing employment levels within the public sector as additional measures.
Despite Bayrou’s assertions, the economic landscape suggests that the relationship between holiday cuts and economic performance may be far more intricate.
The government seeks to engage with unions and stakeholders ahead of the September 1 deadline, where they will provide feedback on the negotiations. The Prime Minister’s communications indicate that these holidays will be a matter of negotiation, rather than an outright decision.
How have unions responded to the proposed holiday cuts?
Major French trade unions, including CFDT, CGT, FO, CFE-CGC, and CFTC, have opposed Bayrou’s budget plan, labeling it a corporate austerity initiative that threatens to amplify social inequalities. They have rejected key proposals, including the abolition of two public holidays, as well as cuts to public services and welfare benefits.
The unions have launched an online petition against the budget proposals, garnering over 200,000 signatures. They plan to convene on September 1 to strategize their response and potentially orchestrate protest actions, including strikes.
