Budget: Criticized from all sides, Bayrou wants to believe a compromise is possible

In the wake of the Prime Minister's shock announcements, including the abolition of two public holidays and the freezing of social benefits and pensions, in order to achieve €43.8 billion in "savings" by 2026, his loyalists continued to defend an "indispensable" and "fairly distributed" effort.

"This is not an austerity plan, but a budget that is rigorous so as not to be in the hands of the financial markets," repeated MoDem leader Marc Fesneau.

During the Council of Ministers, the Prime Minister received the support of President Emmanuel Macron, who praised a plan that has "the virtue of courage, audacity, and lucidity."

But the Prime Minister's partners within the common core remained either discreet—no reaction from Gabriel Attal (Renaissance) at this stage—or outright critical. "Almost nothing in what François Bayrou is proposing solves the problem," Edouard Philippe (Horizons) sternly declared in an interview with the newspaper Le Parisien. "What François Bayrou is proposing is an emergency plan, with all the merits of an emergency plan, but also its limitations."

"Milestones"

More balanced, the president of the Republicans and Minister of the Interior, Bruno Retailleau, considered that a "governing party" like his "cannot shirk" the budget and promised to work on "proposals", while recognizing that Mr. Bayrou had set "a certain number of milestones" on the debt.

The leader of the LR deputies, Laurent Wauquiez, was more reserved. The plan has "the merit of seeking solutions," but it must be "corrected and improved" by tackling welfare and immigration-related spending.

Finally, nothing seemed to find favor with the RN or with LFI.

On Tuesday, Marine Le Pen called for censure if the government "does not completely revise its plan," before targeting the reduction in the Livret A savings account interest rate on Wednesday, which she deemed "disastrous and confiscatory for the middle and working classes."

At LFI, the chairman of the Finance Committee, Eric Coquerel, wants to censor "this Trumpist budget as quickly as possible" and is "obviously expecting the Socialists to show up."

"Nobody wants to vote for such a budget," said budget rapporteur Charles de Courson (Liot), who wonders whether "the Prime Minister, by doing this, is not organizing his exit."

"A lot of time"

No vote of censure can be passed without the Socialist Party. And the government wants to believe that a "compromise" is possible, as was the case with the 2025 budget.

"We will discuss with all parties. Obviously, there is probably a greater chance of reaching an agreement with the Socialist Party," acknowledged Economy Minister Eric Lombard.

But if the Socialist Party has not closed the door to discussion, it has not opened it either.

"The government's proposals are unacceptable and offer no basis for negotiation," warned MP leader Boris Vallaud, denouncing the proposal as a "museum of liberal horrors."

The Socialists intend to discuss the matter based on their own proposals, which they are preparing for the start of the school year, including the so-called Zucman tax, which involves imposing a 2% tax on the wealth of billionaires.

But the government does not want this "extremely unfair" tax, which would lead to "a weakening of our economic system," according to its spokesperson Sophie Primas. It is content to maintain the differential contribution on high incomes, introduced in the 2025 Finance Act, and to propose "additional measures" against tax optimization.

The government is counting on time to reach an agreement, with budget discussions not starting until October.

"We have a lot of time ahead of us, which is fortunate," even if "we do not want this compromise to look like a backroom deal," pleaded Public Accounts Minister Amélie de Montchalin.

But time can play both ways. On the union side, CGT general secretary Sophie Binet called for "mobilization" at the start of the school year "to prevent these social regressions."