President Emmanuel Macron expresses caution over Prime Minister François Bayrou’s proposal for a national referendum on France’s 2025 budget amidst political tensions and public concern over austerity measures.

President Emmanuel Macron has expressed reservations regarding Prime Minister François Bayrou’s proposal to hold a national referendum on France’s 2025 budget. This proposal comes in the wake of significant political unrest and public concern over proposed austerity measures aimed at reducing the nation’s deficit.

Background: A Nation in Fiscal Turmoil

France has been grappling with a mounting public deficit, which stood at 6.1% of GDP in 2024. In response, the government introduced a 2025 budget aiming to reduce the deficit to 5.4% through €50 billion in savings, comprising €30 billion in spending cuts and €20 billion in tax increases. These measures have sparked widespread concern among citizens, trade unions, and public sector employees, fearing job losses and reduced public services.

Bayrou’s Referendum Proposal

Prime Minister Bayrou, acknowledging the gravity of the situation, suggested that such significant fiscal decisions warrant direct public input. In an interview with Journal du Dimanche, he stated, “The subject is so serious, and it carries such major consequences for the future of the country, that it should be put directly to our citizens” . Bayrou’s proposal aims to legitimize the austerity measures through democratic means, potentially diffusing public unrest.

Macron’s Reservations

Despite previously expressing openness to referendums on significant issues, President Macron has shown caution regarding Bayrou’s proposal. According to sources close to the president, Macron is concerned that a referendum on the budget could further polarize the nation and undermine the government’s authority. The Élysée Palace has yet to issue an official statement on the matter.

Political Implications

The proposal has intensified existing political tensions. Opposition parties, including the far-left France Unbowed (LFI) and the far-right National Rally (RN), have criticized the government’s handling of the budget. LFI has already filed a motion of no confidence following Bayrou’s use of Article 49.3 to pass the budget without a parliamentary vote. While the Socialist Party (PS) abstained from the vote, their decision has caused rifts within the left-wing coalition, the Nouveau Front Populaire (NFP).

Public Response

Public reaction to the proposed referendum is mixed. Some citizens view it as an opportunity to have a direct say in critical fiscal decisions, while others fear it may be a tactic to shift responsibility away from elected officials. Trade unions and public sector workers remain wary, concerned that austerity measures will lead to job cuts and diminished public services.

Constitutional Considerations

Under the French Constitution, a referendum can be initiated by the president upon a proposal from the government. However, the use of referendums for budgetary matters is unprecedented and may set a significant precedent for future fiscal policymaking.

As France navigates its fiscal challenges, the proposal for a budget referendum underscores the complexities of balancing economic necessity with democratic principles. President Macron’s reservations highlight the potential risks of such a move, including further political polarization and public unrest. The coming weeks will be crucial in determining whether the government proceeds with the referendum and how it addresses the nation’s economic concerns.