[Global Focus] "The Budget Is Decided in the Streets"... French Public Anger Boils Over Amid Tough Austerity Measures

Mass Protests and General Strikes Against Austerity
Defending Public Services in Transportation, Education, and Healthcare
Calls to Oppose Welfare Cuts and Strengthen Wealth Taxes

"The street (public sentiment) must decide the budget (Le budget va se decider dans la rue)."

Sophie Binet, head of the hardline French labor union CGT, made this statement on the 18th (local time), warning that if the direction of austerity policies does not change, even the new prime minister will be forced into the streets. Marylise Leon, head of France's largest labor confederation CFDT, also raised her voice at a rally in Paris, saying, "Today, we are sending a very clear warning to the government. Even if austerity is inevitable, we cannot accept a policy that shifts the entire burden onto workers."

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No-confidence for Prime Minister Who Proposed Budget Cuts... Nationwide Protests and Strikes Follow

Public sentiment in France has erupted. The French government's strict austerity measures have triggered a massive outpouring of pent-up public discontent in the form of large-scale protests and strikes. According to the Financial Times, a general strike and large street demonstrations against fiscal austerity took place simultaneously across France on this day. Public services such as transportation, education, healthcare, and pharmacies were disrupted, and students blockaded several high schools. Some exhibition halls at the Louvre Museum were closed, and the Eiffel Tower also suspended operations.

Estimates of participation varied, with unions claiming 1 million people and authorities counting around 500,000, but the Financial Times noted that it was clear that the new prime minister, Sebastien Lecornu, faced public pressure less than a week after taking office. While the protests were mostly peaceful, foreign media reported localized clashes in cities such as Nantes and Lyon.

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The message from the unions at these protests was clear and resolute: "Public sentiment must decide the budget." It was a warning that the direction of the budget would be changed by the pressure of the people in the streets. The French daily Le Monde reported on the atmosphere at the scene, stating, "Slogans written on countless placards were clear: 'Tax the rich,' 'Trickle-down economics is a lie,' 'Abolish privileges,' 'Immediately introduce the Zucman tax,' and 'Fill the social security budget by taking from the pockets of the rich.' Some French people are calling for a shift in political direction and stronger tax justice."

Cecilia Lapin, an archaeologist from Normandy, told the New York Times, "The budget imposed on us by the previous prime minister was austere, and the new prime minister will be no different." She said she understood the need to improve France's unstable finances, but was concerned that years of business-friendly tax cuts had reduced state resources, which would now impact schools and hospitals. "Austerity brings no hope. It only widens the cracks in society," she added. The unions and civic groups have three main demands: ▲ Protect public services (healthcare, education, transportation), ▲ Oppose welfare cuts, and ▲ Increase taxes on the wealthy and large corporations.

The spark for these large-scale protests and strikes was the 2026 budget proposal put forward by former Prime Minister Francois Bayrou. He proposed spending cuts of about 44 billion euros, but faced fierce backlash from the public and parliament, lost a confidence vote, and stepped down. President Emmanuel Macron immediately appointed his centrist ally Lecornu as the new prime minister.

Prime Minister Lecornu, who took office on the 9th, immediately withdrew his predecessor's proposal to eliminate two public holidays. He also announced a reduction in privileges such as security details, personal secretaries, and dedicated drivers for former ministers. Lecornu stated, "The leadership cannot ask the people to share the pain without first setting an example." However, the New York Times reported that these measures are expected to be largely symbolic given the record fiscal deficit, which has ballooned to 166.6 billion euros, the largest since World War II.

Nevertheless, public anger has not subsided. Mathieu Bertier, a corrections officer who marched in Paris, warned, "If the government remains stubborn, it too will be ousted."

Lecornu is working to revise the 2026 budget through a series of meetings with party and labor leaders to avoid the fate of his two predecessors, who were ousted by parliament. In a statement after the protests, he said, "I will continue dialogue with all social partners. The demands raised by the protesters are at the heart of our discussions."

France Has the Third Highest National Debt in Europe... Socialist Party Pushes for 'Zucman Tax'

Prime Minister Lecornu's first major hurdle is expected to be passing the budget through the National Assembly. The French lower house is divided into three blocs-left, center, and far right-with no absolute majority. The fate of the budget and the government's operations always depend on political negotiation and compromise. The Socialist Party (PS), which holds the most seats in parliament, has proposed a 2% tax on individuals with assets over 100 million euros (about 145 billion won), under the principle that "the rich should pay more." This tax, nicknamed the "Zucman tax" after a popular protest slogan, would impose a 2% wealth tax on the top 0.01% of France's population, using the revenue for public spending and other resources. The idea is to correct the current "unfair" tax structure, where ordinary and middle-class citizens bear a relatively larger burden.

While Lecornu has promised dialogue with the Socialist Party, it appears difficult to reconcile President Macron's pro-business stance with the left's demands for tax increases and spending relief. The Guardian pointed out, "In a lower house where no party has a majority, the prime minister will inevitably have to make political concessions to pass the budget."

France's economic conditions are not favorable for maintaining the current budget size. On September 12, international credit rating agency Fitch downgraded France's sovereign credit rating from AA- to A+, citing political instability, worsening fiscal balance, and mounting debt as reasons.

As of last year, France's fiscal deficit stood at 5.8% of GDP, far above the eurozone (20 countries using the euro) average of about 3.1%. The national debt exceeds 113% of GDP, the third highest in the eurozone after Greece and Italy. The ballooning deficit is due to massive subsidies provided to address the COVID-19 pandemic and the energy crisis following Russia's invasion of Ukraine in 2022. At the same time, rising global interest rates have significantly increased interest costs.

Fitch stated, "There is no clear path to stabilizing national debt in the coming years," and projected that "national debt will rise from 113.2% of GDP in 2024 to 121% in 2027."

The Financial Times pointed out that even if the budget passes, borrowing costs are likely to keep rising due to higher government bond yields and widening spreads.

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Foreign media have noted that this situation could escalate beyond a simple budget dispute into a broader political and social instability, warning that if the Macron government fails to present a meaningful compromise, the crisis may drag on. Some observers suggest partial compromise is possible. The Financial Times predicted that while Prime Minister Lecornu is unlikely to abandon austerity altogether, he will likely adjust the scale of cuts significantly or retain only some items, taking into account the Socialist Party's demands for tax increases and the unions' strong resistance.

On the other hand, The Guardian warned that if the budget cuts are pushed through as is, the government could face a no-confidence vote or even a cabinet collapse. With former Prime Minister Bayrou having resigned after a no-confidence vote just a week ago, the Lecornu cabinet could face the same fate.