François Bayrou Delivers Stark Assessment and Lays Out Priorities Ahead of the 2026 Budget

Following the Budget Alert Committee meeting on April 15, Prime Minister François Bayrou offered a sobering analysis of France’s economic situation, calling it “a decisive hour of truth” for the country. In a solemn address, he urged a collective awakening in the face of a turbulent international context and fragile public finances. The main priorities for the upcoming budget will be presented before July 14 as part of an accelerated timeline.

A Weakened Economy: Insufficient Production and Low Employment

Bayrou’s first key point: France “does not produce enough,” and employment rates remain lower than those of neighboring European countries, particularly among young people and seniors. The Prime Minister stressed the urgent need to boost economic output, arguing that higher productivity would increase household incomes and reduce public deficits. He highlighted a trade deficit of €100 billion and called for a bold reindustrialization policy, underscoring the need to reduce France’s agricultural, industrial, and intellectual dependencies.

High Public Spending, Taxation at Its Limits

Bayrou pointed to a troubling contradiction: despite having one of the highest public spending levels globally, France does not enjoy the expected returns in terms of quality public services or living standards. He ruled out tax increases — already at 43% of GDP — as an untenable solution. Likewise, he rejected continued reliance on borrowing, as national debt exceeds 110% of GDP and interest payments could reach €100 billion annually by 2029. “It’s a dangerous and potentially irreversible vicious circle,” he warned.

Toward an Ambitious Budget Strategy

Though he did not unveil specific figures, Bayrou outlined four major pillars for the 2026 budget strategy:

1. Strengthening security and defense autonomy at the European level, including an additional €3 billion in defense spending;

2. Rejecting excessive debt with a goal of reducing the budget deficit to below 3% of GDP by 2029;

3. Reforming public administration to improve efficiency through simplification and modernization;

4. Revitalizing France’s economy to enhance its attractiveness and competitiveness.

He also praised the role of local governments — responsible for 70% of public investment — and emphasized the need to adapt France’s social model to face demographic challenges, including declining birth rates and population aging.

A Condensed and Inclusive Timeline

Bayrou announced that this year’s budget calendar will be unusually accelerated. The key outlines of the draft finance bill will be presented by July 14, allowing time for broad consultations with lawmakers, social partners, and regional authorities.

“This moment of reckoning must not hinder action — it must become a time of national mobilization,” Bayrou concluded, calling for unity in the face of the challenges ahead.