Navigating Economic Hurdles: A Call for Comprehensive Reform

Faced with what he describes as an “Himalayas” of economic challenges,Prime Minister François Bayrou is contemplating a referendum to address France’s persistent political gridlock and enact important state and financial reforms. this move comes as the government grapples with considerable debt and seeks innovative solutions to stimulate economic growth.

The “Coherent Plan” Approach

Instead of piecemeal solutions,Bayrou is advocating for a comprehensive strategy. In a recent interview, he emphasized the need for a “coherent plan, with clear, legible proposals” aimed at reducing deficits and national debt. This approach signals a departure from previous strategies that have failed to deliver substantial results.

Seeking Public Mandate for Fiscal Responsibility

Bayrou stresses that the success of any reform hinges on public support. he acknowledges that the necessary efforts will require sacrifices from all sectors of society. The government,having narrowly secured the passage of the 2025 State and Social Security budgets,is now focused on the 2026 budget. To meet its deficit reduction targets—5.4% of GDP this year and 4.6% the next—the government estimates it must identify €40 billion in savings.

Addressing “Massive” Economic Challenges

Echoing his previous statements on public finances,Bayrou highlighted two critical issues: too weak production and overwhelming debt. These challenges, he argues, are the most significant the country has faced in recent history. With a divided National Assembly and opposition from various economic groups, Bayrou views a referendum as a potential means to overcome these obstacles.

The Referendum Gamble

While the decision to hold a referendum rests with the President, Bayrou emphasizes the importance of public endorsement for any meaningful reform. Historically, referendums on budgetary matters are rare in france’s Fifth Republic, making this a high-stakes political maneuver.The last time a referendum substantially impacted French policy was in 2005, when the EU Constitution was rejected, demonstrating the unpredictable nature of such votes.

A referendum can onyl be decided by the President of the Republic. The government proposes,the President decides. But the question of the membership of the French to the reforms is indeed the central issue.

Key Elements of the Proposed Reforms

Bayrou outlined the core components of the reform plan: a resolute drop in expenses, simplification, and better efficiency of the state and public action in general. He also reiterated that the solution does not lie in raising taxes. The prime Minister pointed to past failures in implementing structural reforms in state and public finances, underscoring the urgency for a new approach.

Civil Service Reform on the Horizon

While not explicitly advocating for mass layoffs, Bayrou suggested that a reduction in the civil service workforce is “possible and salutary,” contingent upon a comprehensive reform of the state and local authorities’ roles. This could involve streamlining operations, eliminating redundancies, and re-evaluating the core functions of government.