The French government is preparing a large-scale merger of state agencies as part of a cost-saving initiative. In an effort to streamline operations and reduce expenditures, the government is discussing a proposal to merge existing state agencies, with the potential liquidation of one-third of them.
Amélie de Montchalin, Minister for Public Finances, announced that the government intends to cut the number of state agencies by approximately one-third by the end of this year. This will be accomplished through mergers or liquidations.
This restructuring plan targets a range of specialized, state-funded agencies, though universities will be excluded from the changes. The minister emphasized that this move is expected to save between 2-3 billion dollars.
In line with broader fiscal goals, the government of Prime Minister François Bayrou aims to significantly reduce the national budget deficit from 5.4% of GDP this year to 3% of GDP by 2029, which is the EU’s acceptable limit.
Earlier, Finance Minister Éric Lombard revealed that the government is also planning a 40 billion-euro reduction in public spending next year.
Additionally, the Élysée Palace has dismissed a Bloomberg report that suggested President Emmanuel Macron might be contemplating early elections in the fall of 2025.
