Merging or Abolishing One-Third of National Agencies
"Expected Budget Savings of 2 to 3 Billion Euros"
The French government, which has decided to reduce public spending in order to resolve its fiscal deficit, is considering a plan to merge or abolish one-third of national agencies and operating entities.
Amelie de Montchalin, Minister of the Budget under the French Ministry of Finance, said on a local broadcast on the 27th (local time), "The government is working to reduce operating costs on the largest scale in 25 years," and added, "We will propose to merge or abolish one-third of national agencies and operating entities in next year's budget."
Minister de Montchalin explained, "Currently, 180,000 people work in these agencies and operating entities, which is more than the number of military and police personnel," and continued, "Our organization has become difficult to understand in some aspects, and the French people also perceive it as complicated. Furthermore, I believe it is undermining the efficiency of the state."
She added, "We will reduce complexity and rebuild a stronger and more efficient state on the ground," and stated that the consolidation of agencies is expected to result in budget savings of 2 to 3 billion euros (approximately 2.8 trillion to 4.2 trillion won).
She also noted that these measures will lead to a reduction in public sector jobs, but emphasized that instead of indiscriminate layoffs, the government will, for example, stop replacing retirees. She further stressed that universities will be excluded from the consolidation targets.
Last year, France's public fiscal deficit was provisionally tallied at 5.8% of its gross domestic product (GDP). The French government aims to reduce this deficit to 5.4% this year.
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