France's National Debt Reaches 114% of GDP
Government Pushes for 'Abolition of Public Holidays' to Cut Budget
Opposition Parties Protest: "What Do Public Holidays Have to Do with Budget Savings?"
The French government's proposal to eliminate two public holidays in consideration of national finances and productivity improvement has met with strong opposition from opposition parties and labor unions. In particular, the government's announcement that it would remove May 8, the Victory in Europe Day marking the end of World War II, from the list of public holidays is causing significant controversy.
According to Yonhap News on July 15 (local time), citing The New York Times (NYT), "Prime Minister Francois Bayrou, during a briefing on next year's budget framework, unveiled measures to reduce public spending and increase productivity as part of efforts to cut national debt."
According to Yonhap News, Prime Minister Bayrou emphasized the need for strong fiscal reform, stating, "If we do not act now, we could face a fiscal crisis like Greece." He presented various austerity measures, including restructuring the public sector. The plan is to fill only one-third of retiring civil servant positions to reduce labor costs and to streamline inefficient state agencies. Adjustments to social security spending, such as reducing subsidies for prescription drugs and restructuring medical expenses, were also included.
Additionally, the plan calls for freezing the budgets of all ministries except for defense at this year's levels to reduce spending, and for abolishing two out of the eleven statutory public holidays to boost productivity. The targeted holidays are Easter Monday and May 8, the Victory in Europe Day commemorating the end of World War II. The French government expects that eliminating these two public holidays will secure approximately 6.7 trillion won (4.2 billion euros) in annual tax revenue.
The opposition parties responded immediately. Jean-Philippe Tanguy, a lawmaker from the far-right National Rally (RN), criticized on Radio France Inter on July 16, "It is unacceptable that the Macron administration, during its seven years in power, has failed to present any alternative other than making hardworking people work even more." He also stated, "Public holidays are not gifts or public spending, but a socio-cultural organizational system," and argued, "They have nothing to do with reducing the national budget."
Especially, the opposition is intensifying its criticism, calling the removal of May 8, Victory in Europe Day, from the list of public holidays an act of "historical amnesia." This day marks the official end of World War II in Europe, when Nazi Germany surrendered to the Allied forces, and has been established in France as a national day of remembrance for the victims and a reaffirmation of the value of freedom.
Thomas Portes, a lawmaker from the far-left party La France Insoumise (LFI), denounced the proposal as a "complete scandal" on X (formerly Twitter). Marine Tondelier, leader of the Green Party, also criticized on X, asking, "How exactly are we supposed to understand this proposal to no longer designate the day marking victory over Nazism as a public holiday?" Sophie Binet, secretary-general of the powerful labor union CGT, told AFP the previous day, "At a time when the far right is on the threshold of power, the prime minister is proposing to abolish the day commemorating victory over the Nazis," adding, "This is a very serious matter."
In response to such criticism, Benjamin Haddad, Minister for European Affairs, argued that there is a historical precedent, stating, "General de Gaulle once removed May 8 from the list of public holidays." In fact, France began commemorating May 8 in 1946, but it was not designated as an official public holiday until five years later. During President de Gaulle's administration in 1959, it was abolished for economic reasons, and in 1975, President Valery Giscard d'Estaing eliminated the commemoration ceremony itself. It was only restored as a public holiday in 1981 under President Mitterrand.
With opposition intensifying, the government has promised to discuss the proposal to abolish public holidays, as well as next year's budget framework, with all political parties. Eric Longuard, Minister of Finance and Economy, said in an interview with Bloomberg TV, "We will improve the plan through discussions with the parties," and pledged to secure the support of the Socialist Party, which has so far cooperated with the Bayrou government, in order to avoid a parliamentary vote of no confidence.
This measure is an austerity-oriented budget plan reflecting France's serious fiscal situation. France's national debt currently stands at 114% of GDP, far exceeding the eurozone average. The fiscal deficit also reached 5.8% of GDP last year, well above the 3% threshold recommended by the European Union (EU). Accordingly, the French government is pursuing a plan to reduce the deficit to 4.6% by next year and to below 3% by 2029.
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