France plans “solidarity contribution” for wealthy in budget overhaul

French Prime Minister François Bayrou has proposed a sweeping €43.8 billion budget tightening plan, which includes a new "solidarity contribution" targeting the wealthiest citizens. The measure is part of an ambitious effort to rein in the country's growing public debt and reduce its budget deficit.

“This contribution will have to involve the most fortunate in the national effort,” Bayrou said on July 15, though he did not provide details about the scope or structure of the proposed levy, Caliber.Az reports via Reuters.

The centrist prime minister’s plan also calls for a freeze on most public spending, including welfare benefits and tax brackets, in 2026 — keeping them at 2025 levels without adjusting for inflation. Left-wing politicians swiftly criticised the move, warning it would disproportionately hurt lower-income households amid rising living costs.

In contrast, defence spending will rise under the proposed budget, which seeks to bring France’s deficit down from 5.4% of GDP in 2025 to 4.6% in 2026. The government ultimately aims to meet the EU’s fiscal deficit limit of 3% by 2029.

France’s deficit stood at 5.8% of GDP last year — nearly double the EU ceiling — as the country grappled with a political crisis that saw four successive governments fail to respond effectively to falling tax revenues and rising expenditures.

“Everyone will have to contribute to the effort,” Bayrou said. He warned that the country’s mounting public debt represented a “mortal danger” and stressed the need to address it “head on.”

Among the more controversial elements of the plan is a proposal to scrap two public holidays — likely Easter Monday and May 8, which marks the end of World War II in Europe — in a bid to boost economic productivity.

“There are simply too many public holidays in May, and the French must get back to work that month,” Bayrou argued. “This would mean billions in additional revenues for the state, as everybody will work more and produce more.”

President Emmanuel Macron has entrusted Bayrou with repairing the country’s strained finances, after his decision to call a snap legislative election last year led to a hung parliament.

By Sabina Mammadli