Too many days off? Can France afford the holidays anymore?

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3 days ago

France's public debt has reached €3.3 trillion, or 114 per cent of GDP, with annual interest payments projected to hit €100 billion by 2029. Prime Minister François Bayrou's 2026 budget proposes cutting two national holidays, freezing welfare, healthcare and civil service pay, and reducing the deficit from 5.8 per cent to 3 per cent by 2029 to avoid a Greek-style financial crisis read more
French Prime Minister Francois Bayrou leaves following the weekly cabinet meeting at the Elysee Palace in Paris, France, July 16, 2025. File Image/Reuters
France's long-standing tradition of public holidays is under the lens as Prime Minister François Bayrou unveiled a sweeping fiscal consolidation plan that includes the removal of two national holidays.
The measure, part of a broader €43.8 billion deficit-reduction strategy, aims to address the country's deepening financial crisis and increasing investor unease over French public debt.
During the presentation of the 2026 budget in Paris, Bayrou outlined a series of fiscal corrections targeting what he described as France's 'addiction to public spending.'
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Central to this effort is the call to scrap two public holidays — Easter Monday and May 8, Victory in Europe (VE) Day — in order to boost national productivity and reduce economic downtime during the spring period.
'This is the last stop before we hit the cliff and are crushed by debt,' Bayrou warned.
'The entire nation must work harder to produce more and ensure that the country's overall activity is greater throughout the year.'
France's budget crisis
France's economic indicators have become a source of concern for both domestic policymakers and international financial institutions.
The national debt has escalated to €3.3 trillion, representing 114 per cent of GDP — placing France among the most indebted economies in the European Union.
The budget deficit, currently at 5.8 per cent of GDP, exceeds the 3 per cent limit set by EU fiscal rules.
Bayrou's administration seeks to reduce this shortfall to 4.6 per cent in 2026 and reach compliance with the EU's 3 per cent ceiling by 2029.
However, without aggressive reforms, interest payments on France's debt are forecast to climb dramatically, reaching €100 billion annually by the end of the decade — outpacing even the military budget.
For 2025, debt servicing alone is projected to consume €60 billion, a sum nearing the defence allocation.
With public borrowing costs increasing, France has found itself paying significantly higher yields on its sovereign debt.
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The spread between French and German 10-year bonds recently held near a three-week high at around 70 basis points, reflecting investor anxiety about both financial mismanagement and political instability.
What Bayrou has proposed
In addition to the proposed holiday reductions, Bayrou's fiscal blueprint includes a comprehensive freeze on non-defence public expenditures.
Welfare payouts and pension benefits will be held at 2025 levels.
Healthcare funding is slated for a €5 billion cut, while hiring in the civil service will be sharply limited — only two out of every three departing government employees will be replaced.
The French prime minister also intends to restructure public sector operations by closing or downsizing what he called 'unproductive' state agencies.
Government salaries, including those of public servants and staff in public institutions, will be frozen across the board.
At the same time, President Emmanuel Macron has insisted that military spending continue to rise to meet growing strategic threats.
Defence funding will increase by €3.5 billion in 2026, with additional increases planned for 2027 — a reflection of France's positioning in an increasingly tense geopolitical environment, particularly concerning Russia.
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Holidays at risk: Easter Monday and May 8
Bayrou has pointed to Easter Monday and Victory Day (May 8) — both deeply ingrained in the national calendar — as likely candidates for removal.
These holidays, he suggested, fall within periods that already have excessive days off, especially in May, which includes Labour Day and Ascension Day. He referred to the month as resembling 'a veritable Gruyère,' comparing it to Swiss cheese full of holes.
'It's the entire country going back to work on a day it hasn't worked for a long time,' Bayrou said. The goal, he added, is to increase productive work days and generate billions of euros in additional economic output.
However, Bayrou acknowledged that these holidays were merely initial suggestions and expressed openness to other options.
France currently observes 11 official public holidays annually, the same as the United States.
Historically, attempts to alter holiday schedules in France have met with fierce resistance.
A prior attempt in 2003 to cancel Ascension Day following a devastating heatwave led to widespread protests and was ultimately abandoned.
'An attack on our history'
Right-wing and left-wing leaders alike have denounced the plan as an affront to national heritage and an attack on working-class citizens.
'Cancelling two holidays is a direct attack on our history, our roots and on working France,' declared Jordan Bardella, leader of the far-right National Rally, the largest individual party in France's lower house.
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His parliamentary group firmly rejected the idea, vowing not to support what he described as an act of provocation.
Jean-Luc Mélenchon, head of the radical left France Unbowed (LFI), called for Bayrou's dismissal, stating, 'It's time to expel Bayrou' and 'end this destruction, these injustices.'
Fabien Roussel of the French Communist Party labelled the budget 'an organised hold-up.'
The Socialist Party also joined in the criticism. Senior MP Boris Vallaud condemned the government's approach as unjust and economically misguided: 'Asking always more from those who have little, and so little from those who have much, is neither serious, effective, nor just.'
Marine Le Pen, speaking as head of the National Rally's parliamentary group, added, 'This government prefers to turn on the French people, working people and retirees, rather than tackle waste.'
Bayrou, however, has stood firm. He believes that while these measures may be unpopular, they are essential. 'Everyone will have to contribute to the effort,' he said.
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'The entire nation has to work more so that the activity of the country as a whole increases, and so that France's situation improves.'
Political gamble for Bayrou
Bayrou's position is precarious. Appointed after his predecessor Michel Barnier was brought down in December last year by a no-confidence motion over similar fiscal plans, Bayrou now leads a minority government with no clear majority in Parliament.
The snap election called by Macron last year led to a hung legislature, and the prime minister must now navigate competing demands from rival factions on both the left and right.
The budget proposal presented this week is only a preliminary outline. A detailed draft is expected to be submitted to Parliament by October.
Without cross-party support, however, Bayrou faces a real risk of another no-confidence vote.
Mujtaba Rahman, head of Europe operations at Eurasia Group, noted, 'Bayrou has gone for broke, knowing full well these measures have little chance of passing.'
Should Bayrou fail to find consensus, France may enter yet another cycle of political instability.
For now, Bayrou remains adamant that without significant changes — including sacrifices like working on previously sacred holidays — France risks repeating the mistakes of other indebted nations.
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'We should never forget what happened to Greece,' he said.
With inputs from agencies