French Prime Minister Francois Bayrou has recently called on the public to support a plan to cut nearly 44 billion euros in public spending to cope with a serious budget deficit and skyrocketing public debt.
Prime Minister Bayrou warned that French public debt is rising at a rate of about 5,000 euros per second as the total national debt has now reached 3.4 trillion euros. This could lead to annual loan interest rates exceeding 100 billion euros by 2029 if not controlled soon.
Mr. Bayrou's statement comes as France's budget deficit in 2024 has reached 5.8% of GDP, nearly double the 3% ceiling set by the European Union (EU).
In this situation, the French government has made a series of new proposals including canceling 2 days off to increase labor productivity, cutting public sector staff and freezing social allowances and pensions.
However, while proposing to tighten spending on social security, the government continues to push forward the defense budget.
Military spending is expected to increase to 64 billion euros by 2027, which is double that of 2017. Paris has also pledged to add 6.5 billion euros over the next two years, citing the need to strengthen security in the face of growing regional risks.
This defense priority decision comes from a recent report warning Europe of a major war before 2030, in which Russia is seen as the main threat.
The French government's " belt-rack" proposals in parallel with increased defense spending are facing backlash from left-wing parties, accusing the government of sacrificing the welfare of the people to prioritize the defense budget.
