France To Scrap Two Public Holidays: Fiscal Penny-Pinching At Its Worst

Grappling with persistent budget deficits and mounting public debt, France has found herself once again at the centre of a heated debate, sparked by the French Prime Minister’s proposal of scrapping the Allied victory day and Easter Monday holidays to revitalise the economy. While the Government claims that the move could deliver much-needed fiscal relief, critics remain sceptical about its implicit political, economic, and cultural costs. I examine the proposed reform, and ultimately question whether the fiscal gains are sufficient to justify the broader societal costs.

Economically, Bayrou’s proposal is expected to yield negligible returns. A 0.06% boost to the economy is projected. The modest figure aligns with those of other European countries, such as Denmark, that have adopted similar measures. However, this minimal return could come with a significant cost. The French workforce is renowned for its emphasis on achieving a work-life balance. Many of them travel within the country during holidays, creating considerable economic returns. Studies reveal that domestic tourism accounts for around 70% of the country’s tourism GDP. Hence, it remains questionable whether the policy could generate a net gain. Worse still, longer work hours do not necessarily translate to augmented economic outputs. Grievance, diminished morale, and fatigue may drag workers’ productivity, offsetting some of the anticipated gains.

This ambitious deficit-reduction proposal has also torn French politics apart. France currently has 11 statutory public holidays per year, which is average among EU member states. Prime Minister François Bayrou's recent proposal would make the country rank the lowest among its neighbours, undermining labour welfare and drawing stern opposition from unions and the Left. The far-right National Rally (RN) also assailed the proposal as an attempt to fade out the country's traditional values and historical memory. Coupled with the public outcry, opposition parties from different political spectrums have already been threatening to unseat Bayrou, further weakening Macron's rule.

Indeed, it is not the first time that the Hexagon has compromised statutory holidays to benefit its economy. In 2003, the then-Prime Minister Jean-Pierre Raffarin replaced the Pentecost Monday holiday with a "day of solidarity", where employees would work for free to provide financial aid for seniors who had suffered from a heatwave. The measure, lacking unified instructions, was not duly followed by all enterprises and ultimately led to disastrous chaos and massive strikes, prompting Raffarin to resign two weeks later. The considerable political risk and previous failures suggest that it may not be a wise move for Bayrou.

Beyond economic and domestic political calculi lies a deeper concern over the impacts of Bayrou’s proposal on the nation’s cultural fabrics and geopolitical influence.

Holidays have long been a pivotal element in French culture. Many of these not only hold religious and historical importance but also offer a valuable opportunity for family gatherings and community reunions, which are essential for shaping France’s social solidarity and collective identity. Removing these holidays is a Pandora’s Box, potentially accelerating work-centric lifestyles and individualism. It could undermine long-standing values that distinguish the Hexagon from its more market-oriented counterparts, shaking its unique social model.

The abolition of two holidays, especially the Allied Victory Day, could also hamper France's international image. As one of the victorious countries in World War II, France often holds military parades and wreath-laying ceremonies on the Allied Victory Day to honour the soldiers who sacrificed their lives. These gestures are essential in demonstrating France's commitment to the global liberal camp and its determination to protect freedom and democracy. Apart from that, as a pivotal engine of European integration, France has long positioned itself as the third pole in international politics and strives to rejuvenate Europe by exerting its influence in geopolitics. Scrapping the Allied Victory Day under the name of saving the economy might send a misleading message that France is no longer willing or financially capable of leading Europe in a world overshadowed by a "new cold war".

France is undoubtedly struggling with its economy. It is commendable that the Bayrou Cabinet is resolute in addressing this challenging issue. Unfortunately, simply cancelling two holidays seems unlikely to achieve fiscal goals and would also have significant side effects. Perhaps the country’s economic machine needs something more than minor repairs to run smoothly again.

Illustration by Will Allen/Europinion