France currently has the third highest debt ratio in the eurozone, trailing only Greece and Italy, and aims to reduce its public deficit to 5.4% of GDP by 2025.

On January 15, 2025, French Public Accounts Minister Amélie de Montchalin unveiled a significant initiative aimed at reducing public spending by over 30 billion euros in the upcoming budget.

This budget proposal comes in the wake of a credit rating downgrade by Moody's, highlighting the fiscal challenges facing the country.

Prime Minister François Bayrou has also stressed the necessity for significant savings, proposing a three-month 'conclave' to renegotiate pension reforms.

As discussions on the budget resume, both de Montchalin and Bayrou are expected to announce specific agency mergers or eliminations to streamline operations.

During an interview on TF1, de Montchalin confirmed that the budget plan includes 32 billion euros in savings and 21 billion euros in revenue increases.

The French government is targeting a total of 53 billion euros in savings to address a national deficit that currently hovers near 6%.

This budgetary effort will focus on cutting expenditures across approximately 1,000 public agencies in France.

The plan specifically outlines a 32 billion euro reduction in state spending alongside a 21 billion euro increase in tax revenues.

The budget bill is set for discussion in the Senate this week, with plans for further deliberation in the lower house next week.

De Montchalin emphasized the importance of tax compliance, indicating a need for changes to ensure fair tax contributions, particularly in addressing 'super-optimisation' strategies.

Importantly, de Montchalin assured that there would be no tax increases for the middle and working classes in this budget.