Newly appointed French Prime Minister Sebastien Lecornu has decided to discard a controversial proposal by his predecessor to eliminate two public holidays as a measure to address the country’s budget deficit. This decision comes in response to France’s downgraded credit score by Fitch to an A+, marking its lowest point and illustrating the financial pressure facing the government.
Lecornu, newly in office, is tasked with forming a cabinet and crafting a budget for 2026 amid a fractured parliament. He has pledged to explore creative strategies to gain bipartisan support for a debt-reduction budget while advocating for new policy directions. In his first interview, Lecornu emphasized the need for stability and progress, advocating for honest and high-level discussions with opposition parties, including the Socialists, Ecologists, and Communists.
French President Emmanuel Macron had recently appointed Lecornu, a trusted conservative ally, after the ouster of François Bayrou as Prime Minister in a confidence vote over proposed budget cuts amounting to 44 billion euros. Lecornu now stands as Macron’s fifth prime minister in less than two years, tasked with navigating a divided parliament and the challenges that have led to the removal of his predecessors.
The French debt situation has become increasingly precarious since Bayrou’s call for a vote of confidence, nearing borrowing costs that rival those of heavily indebted Italy. Lecornu noted the impact of rising interest rates on government finances and emphasized the need for a stable financial trajectory to ensure economic sovereignty.
The recent developments highlight the ongoing political and economic tensions in France, as the government strives to balance fiscal austerity with societal needs. The refusal to cut public holidays may signal a move towards maintaining worker rights while trying to restore fiscal stability. As Lecornu seeks to chart a path forward, the challenge lies in forging consensus and designing a budget that satisfies both economic imperatives and the diverse political factions in the French parliament.
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