Paris [France], September 15: New French Prime Minister Sebastien Lecornu has abandoned his predecessor's controversial plan to scrap two public holidays.
"I want those who work to be spared. That is why I have decided to reverse the planned abolition of two public holidays," Lecornu said in an interview with local media published on Saturday.
He added that alternative measures are needed to restore the state's finances.
Starting next week, consultations will be held on decentralizing the French administration, streamlining government agencies and transferring more responsibilities to local councils, Lecornu said.
He also proposed merging or abolishing certain government bodies and revoking lifetime privileges granted to former Cabinet members.
"Reforms are not always just 'for others;' that creates mistrust," he said.
France, the second-largest eurozone economy, now has the third-highest debt ratio in the European Union at 114%, after Greece and Italy.
The country's budget deficit recently reached 5.8%, well above the EU limit of 3% of economic output.
And with around 3.3 trillion euros ($3.8 trillion), France has the highest debt in the European Union.
Amid the budget crisis, Fitch Ratings downgraded France's credit rating on Friday, likely raising borrowing costs for French sovereign debt. Fitch cited France's high and rising public debt and the limited prospects for economic reforms due to domestic political polarization and instability. The agency noted that France has seen three different governments since mid-2024, highlighting the volatility.
"We are paying for the instability," Lecornu said in the interview.
He warned that higher interest rates for debt servicing would directly impact state finances and affect citizens and businesses alike. "In this situation, a stable financial course must be found - that is also a question of sovereignty." On Monday, former prime minister François Bayrou lost a parliamentary confidence vote after less than nine months in office, stepping down as head of the minority government.
Macron then appointed Lecornu, who had been the defence minister.
Source: Qatar Tribune
