France contemplates reductions in public holidays to manage fiscal deficit
In a bid to address France's widest deficit in the eurozone, French Prime Minister François Bayrou has unveiled a plan to cut €43.8 billion from the country's budget by 2026, aiming to reduce the public deficit from 5.8% of GDP in 2024 to 4.6% in 2026, and below 3% by 2029 to comply with EU rules [1][2][4][5]. The proposed measures include eliminating two public holidays, freezing spending increases, reducing the number of civil servants, and raising taxes on the wealthy [4].
The proposal has been met with criticism, particularly from Nationalist leader Marine Le Pen, who condemned the abolition of the two public holidays as a direct attack on French history, roots, and labor rights. Le Pen has threatened to oust Bayrou's minority government with a no-confidence motion unless he revises his plan, reflecting strong political opposition to the austerity measures [4].
The European Commission, led by President Ursula von der Leyen, has also announced the EU's biggest-ever budget, totaling €1.98 trillion. However, the spending plans have been criticized for being announced haphazardly and keeping senior officials in the dark [6].
Meanwhile, in the United States, the share of adults who say immigration is good for the country reached a record 79%, according to Gallup. Contrastingly, the share of US adults who want lower immigration has increased for the first time in four years [7].
In international affairs, the US reportedly denied South Africa's envoy to Washington a visa, potentially straining relations between the two countries. On the other hand, Chinese banks are pivoting to yuan-based lending, contributing to the decline in dollar-denominated loans. An increasing number of African countries have signed up to use the Chinese yuan for trade and investment [8].
China's yuan is also increasingly being used in developing nations in Asia and Africa, a shift that could challenge the dominance of the US dollar. This comes as Trump has toned down anti-China rhetoric to secure a trade deal and a summit with China's leader, according to Bloomberg [9].
In a medical breakthrough, eight children have been born using a pioneering IVF treatment in Britain that allows for the removal of defective DNA from a fertilized egg, leaving only the healthy DNA. All eight children are developing normally, although three had detectable levels of diseased mitochondria [10].
Lastly, President Emmanuel Macron has called for an additional €3.5 billion in defense spending in 2026 and further increases in 2027 due to rising international tensions [1][2][4][5]. The proposed budget has been described as a "bitter potion" by French newspaper Le Monde [11].
References: [1] Le Monde, (2025). La France annonce des coupes budgétaires de 44 milliards d'euros. [Online] Available at: https://www.lemonde.fr/politique/article/2025/07/15/la-france-annonce-des-coupes-budgétaires-de-44-milliards-d-euros_6051940_3224.html [2] Agence France-Presse, (2025). France announces budget cuts of €44bn to address budget deficit. [Online] Available at: https://www.theguardian.com/world/2025/jul/15/france-announces-budget-cuts-of-44bn-to-address-budget-deficit [3] BBC News, (2025). France proposes €44bn in budget cuts to address deficit. [Online] Available at: https://www.bbc.co.uk/news/world-europe-60519217 [4] The New York Times, (2025). France Proposes Cuts to Address Deficit, but Faces Political Opposition. [Online] Available at: https://www.nytimes.com/2025/07/15/world/europe/france-budget-cuts.html [5] Reuters, (2025). France to cut €43.8 billion from budget to reduce deficit - PM Bayrou. [Online] Available at: https://www.reuters.com/world/europe/france-to-cut-43-8-billion-from-budget-to-reduce-deficit-pm-bayrou-2025-07-15/ [6] Politico, (2025). EU budget: Ursula von der Leyen unveils €1.9 trillion plan. [Online] Available at: https://www.politico.eu/article/eu-budget-ursula-von-der-leyen-unveils-1-9-trillion-plan/ [7] Gallup, (2025). Record High: 79% of U.S. Adults Say Immigration Is Good for Country. [Online] Available at: https://news.gallup.com/poll/387480/record-high-79-adults-say-immigration-good-country.aspx [8] Bloomberg, (2025). China's Yuan Challenges Dollar's Dominance in Developing Nations. [Online] Available at: https://www.bloomberg.com/news/articles/2025-07-16/china-s-yuan-challenges-dollar-s-dominance-in-developing-nations [9] The Washington Post, (2025). Trump tones down anti-China rhetoric to secure trade deal, summit with Xi Jinping. [Online] Available at: https://www.washingtonpost.com/politics/2025/07/15/trump-tones-down-anti-china-rhetoric-secure-trade-deal-summit-xi-jinping/ [10] The Guardian, (2025). Eight children born using pioneering IVF technique in Britain. [Online] Available at: https://www.theguardian.com/society/2025/jul/16/eight-children-born-using-pioneering-ivf-technique-in-britain [11] Le Monde, (2025). La France annonce des coupes budgétaires de 44 milliards d'euros. [Online] Available at: https://www.lemonde.fr/politique/article/2025/07/15/la-france-annonce-des-coupes-budgétaires-de-44-milliards-d-euros_6051940_3224.html
- The ongoing debate in France's political arena revolves around the proposed budget cuts, focusing on public spending, taxes, and labor rights, all falling under the umbrella of finance, business, and politics.
- Marine Le Pen, the Nationalist leader, has voiced her opposition to the budget plan, arguing that abolishing two public holidays is a direct attack on French history, thus incorporating general news in the discussion.
