Budget Squeeze: French Prime Minister Francois Bayrou's Plan Scrutinized

French Prime Minister Francois Bayrou unveiled a budget plan this week aimed at reducing the national deficit. The controversial proposal includes eliminating two public holidays and freezing most public spending, aiming for a total budget tightening of 43.8 billion euros, equivalent to $51 billion.

The plan has provoked mixed reactions within political circles. French central bank governor Francois Villeroy de Galhau has cautiously supported the strategy, stating on Thursday that while the direction seems positive, substantial details require further documentation and debate within parliament.

Opposition parties swiftly attacked the proposal, questioning its viability and potential impact on growth. Villeroy emphasized the need for clarity and parliamentary input, indicating that the plan's implementation must not jeopardize economic stability or ongoing reforms.

(With inputs from agencies.)