France's Public Debt: Geoffroy Didier, Republican Party's General Secretary, claims François Bayrou is expertly buying time to remain in Matignon.
Making a Big Move 🇫🇷
France's PM, François Bayrou, is stirring things up by suggesting a budget deficit reduction referendum. Geoffroy Didier, secretary general of Les Républicains, supports the idea of a referendum generally, but not under these specific urgent circumstances involving public debt. Didier criticizes the government, stating, "This referendum... is a sign of the lack of courage of this government. We know perfectly well what needs to be done today to reduce public spending."
Skirting Scrutiny
Other members of France's political cluster have reacted warily to this referendum announcement. Many, from the far-left to Les Républicains, accuse Bayrou of attempting to bypass the scrutiny of his budget plan. According to Didier, "François Bayrou is cunning because he knows how to gain time to stay at Matignon. He promised us 40 billion euros less in public spending, let him present it."
More Than Just a Vote 📹
The French political landscape has already shown resistance to prime ministers' budget policies in the past. Bayrou's proposal to hold a referendum comes as part of France's aim to decrease its staggering budget deficit, which has recently surpassed 7% of GDP under President Emmanuel Macron, with a goal to reduce it below 3% and comply with European fiscal rules [1][2]. To achieve this objective for 2026, the government plans to reduce the deficit by implementing a "supplementary effort" of €40 billion, mainly through savings rather than new taxes, aiming for a deficit of roughly 4.6% of GDP [3].
Engaging unions, employers, and other stakeholders early on is part of Bayrou's strategy to create support and awareness for the necessity to control public finances. However, Bayrou's popularity is low, and the opposition threatens the stability of his government [4]. The proposal to involve the public directly in budget decisions through a referendum could help build legitimacy and a mandate for significant fiscal reforms [2].
- The suggestion of a budget deficit reduction referendum by France's PM, François Bayrou, has sparked debate in the political realm about potential political maneuvers, with critics accusing him of trying to bypass scrutiny of his budget plan.
- The proposed referendum, aimed at addressing France's high budget deficit, is not just about gaining a vote; it's also a strategy to build legitimacy and a mandate for significant fiscal reforms, as Bayrou grapples with low popularity and potential threats to the stability of his government.
