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Public holidays, taxes, unemployment: 5 budget measures from Bayrou you absolutely need to know!

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The Editor

© Shutterstock - Antonin Albert

Two public holidays canceled, freeze on retirement pensions, reduced health expense reimbursements: this Tuesday, the Prime Minister unveiled the key points of his budget plan for the year 2026. A plan that has sparked outrage from the opposition as it would penalize the most vulnerable, and we’re here to share the main measures with you. 

This Tuesday, July 15, François Bayrou presented the budgetary guidelines of his government for 2026, aiming to make 43.8 billion euros in savings to bring the public deficit down to 4.6% of GDP. Through a rather dramatic speech, the Prime Minister invoked the “curse of debt” to outline a series of particularly radical economic measures, which will be introduced in the next finance bill to be debated in Parliament in the fall of 2026. 

Supposedly resting on “the collective effort” of all French citizens and the government, the plan has already been criticized for its imbalance. By targeting the more vulnerable without any consideration for taxing billionaires, opposition parties, from La France Insoumise to the Rassemblement National, are already…

 to hover over the threat of censorship. Here’s the essential measures to remember. 


1. Health, a prime target for public authorities 

In the 2026 budget plan, the government is first proposing several measures to reduce health expenses, specifically targeting sick leave and the price of medications. The duration of sick leave prescribed by a general practitioner would be capped at 15 days for a first prescription, and at one month after a hospital visit.Capitalization, with possible extensions only after a new consultation and limited to two months. Moreover, the funding for the first seven days of leave would be transferred to employers, and a mandatory waiting period would be established to discourage unjustified absences. 

The government also wants to save on the distribution of medications, and has announced a doubling – from 50 to 100 euros per year per insured – of the medical deductible ceiling. Specifically, the amounts remaining to be paid by patients in case of purchase of medications, paramedical services, or medical transportation would increase by "8 euros maximum per month", as specified by the minister. Finally, an effort is requested regarding long-term conditions (ALD), such as chronic diseases like diabetes or can.those who benefit today from comprehensive care: the government wishes to review certain criteria or reimbursement methods to better manage their costs. 


2. A « blank year » for social benefits and income tax scale

Another controversial measure: the introduction of a « blank year » for social benefits, retirement pensions and the income tax scale. In concrete terms, this means that neither retirement pensions nor social allowances will be adjusted for inflation, which is optimistically estimated at 1% in 2026. Beneficiaries will therefore see their purchasing power eroded, as they will receive the same amounts in euros while prices continue to rise. In the same spirit, the income tax scale and the General Social Contribution (CSG) will remain frozen, .regardless of inflation, which will result in a heavier tax bill for many taxpayers. 


3. The Change to the Tax Allowance 

Today, all retirees enjoy a 10% tax allowance on their pensions when they pay income tax, intended to cover for "professional expenses." The government wants to replace this benefit, which is considered unfair, with a fixed annual amount of 2,000 euros, applicable starting in 2026. According to François Bayrou and the Minister of Economy, Éric Lombard, the goal is to support small pensions, protect the purchasing power of average pensions, and reduce the advantage for the highest pensions. The least taxed retirees – those earning less than 20,000 euros per year – will thus pay less tax.

taxes as of today, while those receiving more comfortable pensions will see their taxes increase slightly.


4. A new unemployment reform being considered 

In 2021 and then again in 2023, two unemployment reforms made it tougher to access benefits by extending the minimum required working period to qualify for assistance and tightening the controls on job seekers. These changes aimed to encourage a quick return to work and to reduce prolonged reliance on benefits. For the next reform, the government is considering refining the "eligibility" criteria, which means the conditions to receive benefits, as well as the "maximum duration of compensation". The stated goal is to better align the system with the realities of the job market while keeping costs in check.

o;State. The government plans to consult social partners by the end of the year to collaboratively build these new rules, although more details haven't been provided. 


5. The Removal of Two Public Holidays 

Finally, the Prime Minister has delivered yet another blow to workers by announcing the intention to remove two public holidays, citing examples like Easter Monday and May 8th. The stated aim? “ To reconcile France with work ,” while the government points to a “disenchantment” among workers in the professional world and highlights the struggle some companies face in finding motivated employees.

A proposal that certainly isn’t creating consensus: Jean-Luc Mélenchon has called it the “symbol of social violence” that this removal represents, while the National Rally – a party, we must remember, founded by former Nazi soldiers in 1972 – refers to it as an attack on our history.

uo;, referring to May 8, the day commemorating the victory of 1945. The CGT described the idea of abolishing this day as “very serious” since it represents “the victory against Nazism.” These same parties haven’t hidden their intention to vote for a motion of censure when the session resumes if the measure is kept.