What are the main criticisms of the France - 2025 budget

Introduction

The 2025 French budget has faced intense criticism across political and economic spheres, centered on its austerity measures, constitutional shortcuts, and structural shortcomings.

Let’s review breakdown of the main critiques

Constitutional Overreach and Democratic Erosion

Prime Minister François Bayrou’s repeated use of Article 49.3 to bypass parliamentary votes drew widespread condemnation.

Critics argue this undermines democratic debate, with opposition parties like La France Insoumise (LFI) calling it a “forced passage” that ignores legislative scrutiny.

The tactic mirrors the approach of Bayrou’s predecessor, Michel Barnier, whose government collapsed in December 2024 after similar maneuvers.

Austerity Targeting Public Services

The budget’s €32 billion in spending cuts sparked outrage for disproportionately affecting social programs:

Education

Reduction of 2,200 public-sector jobs amid declining student enrollment.

Healthcare

Delayed inflation-linked pension adjustments (saving €3.6 billion) and insufficient hospital funding.

Environment

Cuts to green subsidies for home insulation and electric vehicles (€1.9 billion).

Opponents warn these measures deepen inequality and harm vulnerable populations, with LFI’s Jean-Luc Mélenchon accusing the government of “technical unemployment” through fiscal strangulation.

Questionable Fiscal Assumptions

Economists criticize the budget’s reliance on optimistic growth projections (1.1% GDP growth for 2025) and failure to address structural deficits.

Goldman Sachs revised France’s growth forecast downward to 0.7%, citing political uncertainty and weak consumer confidence.

The deficit target of 5.4% of GDP is deemed precarious, with analysts warning it could rise to 5.5% without sustainable reforms.

Tax Burden and Competitiveness

While the budget raises €21 billion via taxes on corporations and high earners, critics argue it neglects broader tax reforms.

The Socialist Party condemned it as a “right-wing budget” that burdens households without boosting economic competitiveness.

Proposed levies on mutual insurance and online gambling also drew fire for disproportionately affecting middle- and lower-income groups.

Political Fragmentation and Governance Risks

The budget’s passage relied on fractured opposition:

The far-right National Rally (RN) criticized its lack of “political substance” but hesitated to support censure.

The Socialist Party abstained from no-confidence votes, prioritizing stability over policy objections.

This fragmentation has left the government vulnerable to further crises, with analysts warning of prolonged instability ahead of the 2027 elections.

Environmental and Labor Shortfalls

Cuts to apprenticeship programs (€2.1 billion) and green initiatives weakened France’s climate commitments, drawing ire from environmental groups. Unions also protested delayed pension adjustments, arguing they erode purchasing power for retirees.

Lack of Structural Reforms

Experts note the budget avoids tackling systemic issues in healthcare, pensions, and public administration. Former officials labeled it a “ghost budget” (Jean-Philippe Tanguy, RN) that prioritizes short-term fixes over long-term sustainability.

The Atlantic Council highlighted Parliament’s “irresponsible” failure to engage in substantive debate.

Conclusion

The budget’s survival hinges on fragile political alliances, but its criticisms reflect broader discontent with austerity-driven governance and democratic accountability in France.