France to Cut a Third of Public Agencies to Curb Budget Deficit
The French government plans to eliminate or merge a third of its public agencies and institutions starting next year, in a bid to reduce a budget deficit deemed too high. The announcement was made by Amélie de Montchalin, Minister of Public Accounts, during an interview on CNEWS.
“In 2025, the state will undertake the largest attempt to cut public spending […]. By the end of the year, we will submit, as part of the 2026 budget, a proposal to eliminate or merge a third of agencies and operators, excluding universities,” she stated.
The minister pointed out that these organizations currently employ 180,000 people—more than the national gendarmerie. She acknowledged that the move would lead to a reduction in public sector jobs but insisted that it would allow the state to achieve estimated savings of between €2 and €3 billion. She promised to provide further details during hearings before the Senate scheduled for May.
Previously, Bruno Le Maire, Minister of Economy, Finance, and Industrial and Digital Sovereignty, announced that the government intends to maintain the budget deficit at 5.4% in 2025, in line with budget forecasts, and reduce it to 4.6% in 2026. However, achieving this goal will require €40 billion in savings.
The minister noted that most of the reduction would come from spending cuts, while also leaving the door open to potential increases in tax revenues. He also described the current level of public debt—now standing at €3.3 trillion—as “too high.”
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