French premier François Bayrou has staked his government’s survival on striking a deal with the Socialist party, betting he can offer concessions to convince left-leaning MPs to pass a belt-tightening budget.

PARIS (AP) — France’s prime minister proposed on Tuesday the elimination of two public holidays from the country’s annual calendar — possibly Easter Monday and the day marking the Allied victory over the Nazis — to save money in next year’s budget.

Prime minister is searching for €40 billion in savings from the upcoming budget, which could see tax bands frozen

French President Emmanuel Macron said on Sunday that France would increase its defence budget more quickly than originally planned, announcing additional spending of €3. 5 billion ($4 billion) for 2026 and €3 billion for 2027 amid military threats from Russia.

French Prime Minister Francois Bayrou on Tuesday announced a plan to steady France's creaking public finances, outlining 43.8  billion euros ($50.88 billion) in deficit reduction measures in 2026, and proposing cutting two bank holidays to spur growth.

France's Prime Minister will try to reduce the deficit from 5.4% of GDP this year to 4.6% next year. But without significant tax hikes, the move will necessarily entail a reduction in public spending.

But the budget Bayrou and his ministers presented was marked by a €43.8 billion squeeze designed to bring down France’s €3.3 trillion public debt and rein in its budget deficit while boosting France's defense spending.