François Bayrou wants to raise awareness on Tuesday of the "pathologies" of public finances

This major event, organized by the Prime Minister, will bring together ministers Eric Lombard (Economy) and Amélie de Montchalin (Public Accounts), parliamentarians, social security organizations and local authorities.

"France has been dragging along pathologies, (...) or at least imbalances, for decades. Well, let's say for 30 years," declared François Bayrou on the sidelines of a trip on Friday.

"They are all the more difficult to address as we have entered a time of crisis. And yet we are going to present them to the French people to share with them (...) all the risks" inherent in drawing up the next budget, he continued.

This assessment of France's debt and deficit, among the highest in Europe, is not expected to lead to any concrete announcements.

Following discussions scheduled behind closed doors, François Bayrou is expected to speak at a press conference, as the government prepares to present its medium-term budgetary and structural plan (MSTP) to the Council of Ministers on Wednesday.

This document, addressed to the European Commission, presents the country's budgetary trajectory for the coming years.

"Whatever happens"

This conference will be held the day after a first "business council" at Bercy, a new regular working body with employers' organizations.

Eric Lombard promised to support businesses shaken by US tariffs, while warning: "The time for doing whatever it takes is over." According to Amélie de Montchalin, the time has now come to "do whatever happens," illustrating a firm commitment to staying on budgetary course.

The context is difficult for the French economy, shaken like those of many other countries by the trade conflict triggered by the United States, which adds to the internal political instability.

The government's growth forecast for 2025 has been cut to 0,7%, after 1,1% in 2024.

Despite this more gloomy outlook, the government still intends to reduce the public deficit to 5,4% of gross domestic product (GDP) this year, after 5,8% in 2024. To avoid another slip-up after two road crashes in 2023 and 2024, it announced on Wednesday an additional effort to reduce spending by 5 billion euros.

On Sunday, the Bercy minister suggested that it was "possible" that the additional efforts would exceed the five billion euros planned.

"Very considerable" effort in 2026

Prime Minister François Bayrou cited "the need to increase the employment rate of seniors" in a statement Thursday. Also regularly mentioned in the debate, particularly by employers, are possible efforts by retirees, a VAT increase, and the financing of social security.

CFDT General Secretary Marylise Léon discussed "avenues to explore in terms of social protection but also taxation" in an interview published Sunday in the daily newspaper Les Echos. "We cannot have so many upheavals and challenges and keep the same rhetoric as in 2017: making efforts and reforms without touching taxes," she said.

Furthermore, France will have to make "an additional effort of 40 billion euros" next year, a "very considerable" commitment, "essentially" in the form of savings, necessary to achieve its public deficit target, Mr. Lombard announced again on BFMTV on Sunday.

"We have a radically new method, with the Prime Minister, which is to construct this budget starting Tuesday," Eric Lombard declared.

He also said he "hoped" that the differential contribution on the highest incomes (CDHR), applied to the most affluent households, presented as temporary and which sets a minimum tax rate of 20%, would be "permanent".

"The Prime Minister has committed, as has the President of the Republic, (...) not to increase taxes," Ms. Primas reminded the RTL/M6/Le Figaro/Public Sénat "Grand Jury" on Sunday.