France’s New Prime Minister Faces Budget Crisis and Nationwide Strikes

France’s newly appointed prime minister, Sébastien Lecornu, moved quickly this week to defuse public anger by abandoning a plan to cut two public holidays and announcing reductions to lifetime benefits for former government officials as he confronts a widening budget deficit, a fractious Parliament and planned nationwide strikes.

Lecornu, 39, who became France’s fourth prime minister in a year, pledged to seek “other sources of financing” after his predecessor’s proposal to eliminate Easter Monday and Victory Day (May 8) stoked public outrage. He also said police protection for former officials would be capped at three years and state-provided cars and drivers would be limited to 10 years, measures officials estimate will save about 4.4 million euros ($5.2 million) a year.

The conciliatory gestures come as trade unions and left-wing parties prepare nationwide strikes and protests Thursday to oppose proposed budget cuts and other government policies. Unions have framed the actions as a defense of social spending and an expression of anger over a string of reforms, including a recent pension overhaul that raised the minimum retirement age from 62 to 64.

Lecornu has also begun a round of meetings with opposition leaders and union officials in an attempt to stabilize a minority government that took office after President Emmanuel Macron called early parliamentary elections in June that left a deeply fragmented legislature. The uncertainty in the National Assembly heightens the risk that the new government could fall in a no-confidence vote if it fails to build ad hoc majorities for its budget plans.

France’s financial position complicates the political task. The previous government collapsed over plans to cut 44 billion euros ($51 billion) in public spending intended to rein in the debt of the European Union’s second-largest economy. Last week, Fitch Ratings downgraded France’s credit rating, saying it expects the country’s debt ratio “will continue to rise.”

Lecornu has not yet laid out a comprehensive fiscal strategy. He met with Socialist leader Olivier Faure on Wednesday to discuss a possible parliamentary non-aggression pact to avoid an immediate collapse of his cabinet. The Socialist party is pressing for a wealth tax proposal advocated by economist Gabriel Zucman; French media reported Lecornu may be open to a scaled-down version of such a tax, an idea opposed by his conservative allies in The Republicans.

Marine Le Pen, leader of the far-right National Rally, predicted Lecornu’s failure and urged Macron to call new legislative elections to break the deadlock. The political fragmentation and public unease have left many voters pessimistic about the government’s ability to address economic strains. Mathieu Gallard, an Ipsos France account director, said opinion polls show French voters are primarily concerned with declining purchasing power and the erosion of social benefits, including health care and pensions.

"The political situation gives the French the feeling leaders are not able to remedy the situation due to that instability," Gallard said, noting that just 9% of respondents rate the country’s economic situation as good, far lower than comparable figures in neighboring Italy and Spain.

Lecornu’s approach combines personnel changes and targeted policy reversals aimed at calming immediate public resentment. The decision to drop the holiday cuts addresses a flashpoint that prompted large street demonstrations and the “Block Everything” day of action last week that saw thousands of protesters across the country.

Supporters describe Lecornu as methodical and discreet, qualities they say could help in brokering difficult compromises. François Ouzilleau, mayor of Vernon in Normandy and an early political associate, said Lecornu has a systematic approach to negotiation and a talent for sensing political opportunities.

Despite those traits, immediate hurdles remain. Unions have pledged disruption across transport, public services, hospitals and schools on Thursday, testing Lecornu’s ability to keep essential services running while pursuing contentious fiscal adjustments. Legislatively, he must reconcile competing demands: leftists pushing for new taxes on the wealthy and conservatives resisting broad tax increases, all while presenting a credible plan to international markets and rating agencies.

For now, Lecornu has taken symbolic steps to cool public discontent and signaled a willingness to engage rivals. Whether he can translate outreach into durable parliamentary alliances and a credible deficit-reduction plan remains uncertain, and the planned strikes will be an early gauge of public patience with another government change in a year of political turbulence.