Francois Bayrou's Bold Proposal to Rescue French Finances

French Prime Minister Francois Bayrou aims to unveil a plan in early July to stabilize public finances, calling for nationwide effort to counter over-indebtedness. He suggests a referendum on the budget, leaving the decision to President Macron. The government seeks 40 billion euros in budget savings amid political challenges.

On Tuesday, French Prime Minister Francois Bayrou announced plans to reveal strategies in early July designed to bring public finances under control. Acknowledging the nation's significant debt, Bayrou emphasized the need for collective effort to restore economic stability.

He expressed interest in a budget referendum, although the ultimate decision rests with President Emmanuel Macron. The centrist leader is keen on gathering public support despite a politically divided landscape.

Struggling with a 4.6% fiscal deficit goal for next year, the French government aims to identify 40 billion euros in budgetary cuts. Last year's unexpected electoral outcome complicated fiscal policymaking, exacerbating financial challenges.

(With inputs from agencies.)