He has warned against complacency<\/a>, saying the \u201cyears of abundance are over\u201d. Probably his most unpopular act so far is to push through a rise in the retirement age from 62<\/a>, saying that higher pensions payments are a drag on the state\u2019s finances and deny the economy skilled workers.<\/p>\n Bayrou\u2019s minority government aims to go further. It plans to save almost \u20ac44bn (\u00a338bn), to bring down the budget deficit from last year\u2019s 5.8% of GDP to 4.6% in 2026. One of its more contentious proposals is the scrapping of two French public holidays.<\/p>\n The only rescue plan available appears to be re-formulating the budget to bring the Socialist party on side, though months of wrangling have made that seem a distant prospect.<\/p>\n Joseph Dickerson, an analyst at Jefferies, said that despite a fall in the value of French banks on the stock market today, there were few repercussions from higher debt costs of political instability for the French financial sector, at least in the short term.<\/p>\n He said the political crisis was more a threat to economic growth than the solvency of the government.<\/p>\n Analysts at Goldman Sachs said they expected Bayrou to temper his demand for a reduction in the annual deficit as a way to save his administration. However, a higher deficit \u201cwould imply a further increase in the debt-to-GDP ratio and put potential credit rating adjustments back in focus\u201d.<\/p>\n This would bring with it a boost for the economy because \u201ca smaller deficit reduction into next year would imply a smaller fiscal drag and be positive for growth, all else equal\u201d, they said.<\/p>\n \u201cBut the tightening in financial conditions and increase in policy uncertainty would likely be negative for growth. Taken together, we think that growth would likely continue to run at 0.6% in 2025 and 0.9% in 2026,\u201d they added.<\/p>\n These figures will make grim reading for Macron, who pledged to develop a more vibrant, high-growth economy.<\/p>\n With French polls showing there are few plans around which a majority of French people are willing to coalesce, a budget could be a long way off.<\/p>\n Quick GuideContact Guardian Business about this storyShow The best public interest journalism relies on first-hand accounts from people in the know.<\/p>\n If you have something to share on this subject you can contact the Business team confidentially using the following methods.<\/p>\n Secure Messaging in the Guardian app<\/strong><\/p>\n The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. This prevents an observer from knowing that you are communicating with us at all, let alone what is being said.<\/p>\n If you don’t already have the Guardian app, download it (iOS<\/a>\/Android<\/a>) and go to the menu. Scroll down and click on Secure Messaging<\/b>. When asked who you wish to contact please select the Guardian Business<\/b> team.<\/p>\n SecureDrop, instant messengers, email, telephone and post<\/strong><\/p>\n If you can safely use the tor network without being observed or monitored you can send messages and documents to the Guardian via our SecureDrop platform<\/a>.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/1756319651_366_4000.jpg\")
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