In an effort to reduce spending and meet fiscal targets, the French government has announced plans to merge or eliminate a third of state-backed agencies by the end of the year. Public accounts minister, Amelie de Montchalin, revealed that the consolidation would focus on non-university entities, aiming to save a significant sum of two to three billion euros.
This move is a part of Prime Minister Francois Bayrou's strategy to bring down the public sector budget deficit from 5.4% of economic output to the EU's 3% limit by 2029. Finance Minister Eric Lombard has also emphasized the government's commitment to cutting 40 billion euros in spending in the upcoming fiscal year.
The proposed measures signal a significant shift in France's economic policy, as the government seeks to streamline operations, increase efficiency, and reduce financial burdens. By reorganizing state agencies and operators, the aim is to create a leaner, more cost-effective public sector that can better serve the needs of the country while ensuring long-term financial stability.