French premier says referendum may be needed for reform plan

French Prime Minister Francois Bayrou said he intends to present a plan to reduce the country’s debt pile and boost production in the euro area’s second-biggest economy, and didn’t rule out a referendum to secure public backing for the reforms.

The premier said his proposals will include a “determined reduction in spending” as well as simplifying and improving the efficiency of the state.

“Our country faces two massive challenges, the biggest in our recent history: production that is too weak and overwhelming debt,” Bayrou told Le Journal du Dimanche newspaper. “But when debt becomes overwhelming, deficits become unbearable.”

He said it’s essential for the country to balance its public finances, and reiterated that the government must narrow the output gap back below the European Union’s target of 3% of gross domestic product in four years.

Asked if he was considering putting the plan directly to France’s citizens in a plebiscite, he said the issue is sufficiently serious that he’s “not ruling out any option.”

“A referendum can only be decided by the president,” Bayrou said. “But the question of support for reforms among French people is the central one. When you reform using conventional paths, by forcing it through, what happens? The country goes on strike, there’s one protest after another, and no one knows if the people marching really understand the content of what they are contesting.”

France is wrestling to bring its public finances under control after the budget deficit soared to close to 6% of GDP last year, almost double the EU limit. The government cut its growth forecast for the year to 0.7% last month, partly due to uncertainty around US trade tariffs, and has introduced more spending cuts as it targets a gap of 5.4% in 2025.

Bayrou, whose popularity has slipped in recent opinion polls, was appointed by President Emmanuel Macron in December after the previous administration was toppled by parliament in a battle over the budget.