France's Bold Move to Slash Public Sector Agencies

The French government plans to merge or eliminate a third of its agencies to save money, aiming to cut the public sector budget deficit. Public Accounts Minister Amelie de Montchalin expects savings of two to three billion euros. The government also aims to cut 40 billion euros in spending next year.

The French government is set to propose a significant restructuring of its state-backed agencies by the end of the year, aiming to save billions. According to Public Accounts Minister Amelie de Montchalin, the plan includes merging or eliminating a third of government bodies to curb spending.

The ambitious initiative comes as part of Prime Minister Francois Bayrou's broader strategy to reduce the public sector budget deficit—from 5.4% of economic output to the EU ceiling of 3% by 2029. The proposed changes are expected to generate savings ranging from two to three billion euros.

Further emphasizing the government's commitment to financial reform, Finance Minister Eric Lombard has announced a target to cut 40 billion euros in spending for the upcoming fiscal year.

(With inputs from agencies.)