Government's Plans to Abolish Two Public Holidays, Projected to Recoup €4.2 Billion in 2026 Without Imposing Corporate Penalties
In France, a controversial proposal by Prime Minister François Bayrou to abolish two public holidays has sparked significant opposition and widespread protests. The plan, aimed at reducing public spending by €43.8 billion, is part of a broader cost-cutting strategy to improve public finances and stimulate economic growth.
The proposal has been met with fierce resistance from labour groups, including the far-left party La France Insoumise (LFI), who view the abolition of public holidays as an attack on workers' rights and compensation. They argue that reducing paid leave will negatively impact work-life balance and potentially lead to decreased morale among employees.
The government's plan is expected to generate €4.2 billion for the state budget in 2026. Amélie de Montchalin, the Minister of Public Accounts, estimates that the additional activity represents roughly 0.5% of the total annual activity. Each open day in 2024 added approximately 1.5 billion euros in growth, according to the government.
However, the prospect of official discussions between social partners in September, as suggested by Bayrou, is viewed with scepticism. François Hommeril of CFE-CGC stated that the chances of such discussions happening are very low, and that it's not a question of negotiating the means by which they're going to be "robbed."
Cyril Chabanier, president of the CFTC, believes that the abolition of public holidays could result in losses in terms of VAT on the days when these holidays are worked, as Easter Monday has one of the highest consumption rates in France.
The government asserts that the measure will improve public finances and boost growth. However, the executive will not allow social partners to negotiate the number of public holidays to be abolished, nor the amount of the companies' contribution. The contribution from companies could be similar to the 0.3% of the annual gross wage bill for the solidarity day.
The public sector will not make a contribution, as public agents are already paid normally when they work on a public holiday. Workers will be paid normally for the additional working hours, and these hours will not be counted as overtime. The Prime Minister's entourage clarified that it was not planned to touch the two additional public holidays currently granted to Alsace and Moselle.
The controversy around this proposal highlights deep divisions over how best to balance fiscal responsibility with social protections in France. Union leaders argue that employees will pay for the additional work and there will be no long-term economic gain for France. The debate is set to continue as the deadline for unions and employers to discuss this measure approaches.
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