France’s Holiday Cut Plan Offers Little Economic Lift

Economists together with citizens doubt France's plan to eliminate two public holidays for economic growth purposes. Prime Minister Francois Bayrou plans to eliminate Easter Monday and one May bank holiday to address budget deficits yet research indicates minimal economic benefits from this decision.

France currently has 11 public holidays. Bayrou supports the elimination of Easter Monday and one May bank holiday because it would generate additional tax revenue through extended working days. National statistics agency INSEE predicts that the GDP increase from this change will be minimal at 0.06%.

International examples cast doubt on the effectiveness of such measures. The removal of Great Prayer Day from Denmark in 2023 produced minimal changes in economic output because IMF data showed only a 0.01% to 0.06% increase in hours worked.

Research indicates that time off creates positive effects on productivity while boosting tourism and other sectors. A 2023 worldwide research determined that the best number of public holidays should be between 9 and 10 per year. The 11 public holidays in France place the country near the recommended range.

The plan faces potential political difficulties according to critics. The plan faces strong public resistance because the economic advantages might not compensate for the expected negative reaction. The service-based economy of this country does not experience reduced output because of additional holidays.