French Prime Minister says budget reforms may require referendum

French Prime Minister Francois Bayrou announced his intention to present a plan to reduce the country's debt and boost production in the second-largest eurozone economy. The official did not rule out holding a referendum to gain popular support for the reforms.

According to Bayrou, his proposals will include a “determined reduction in spending” and simplifying the government's work to make it more efficient. The Prime Minister explained that France is currently facing two serious problems: a weak production and very high public debt.

Bayrou said that the country needs to balance its public finances and reduce its budget deficit below the European Union's target of 3%. Last year, France's deficit reached nearly 6% of GDP.

Reuters reported that in April, the state cut its annual economic growth forecast to 0.7%, partly due to uncertainty over US trade tariffs. The French government also announced additional spending cuts to reach a budget deficit of 5.4% in 2025.