Today : Apr 28, 2025
Politics
28 April 2025

French Government Plans Major Cuts To State Agencies

Amélie de Montchalin announces proposal to merge or eliminate a third of public agencies by 2026 budget.

On April 27, 2025, Amélie de Montchalin, the French Minister for Public Accounts, announced a significant restructuring plan aimed at reducing the number of state agencies and operators by a third. This proposal, set to be included in the 2026 budget, excludes universities and targets approximately 1,200 public agencies currently operating in France. The government's initiative comes as part of a broader strategy to cut public spending and address a growing public deficit.

During her appearance on the Grand Rendez-Vous CNEWS-Europe1, de Montchalin emphasized the need for the government to streamline operations and manage public finances more effectively. "By the end of the year, we will propose in the budget that a third of the state agencies and operators that are not universities be merged or suppressed," she stated. The government aims to save between 2 to 3 billion euros through this measure.

Currently, around 180,000 people are employed within these agencies, a number that exceeds the total count of gendarmes in France. De Montchalin acknowledged that reducing the workforce would be a consequence of the proposed changes, stating, "We will bring teams closer together, which means there will be fewer public jobs as a result." This move is part of a larger effort to reduce the public deficit, which reached 5.8% of GDP in 2024. The government aims to lower this figure to 5.4% in 2025 and further to 4.6% in 2026, requiring substantial budgetary cuts totaling around 40 billion euros.

As the government pursues these cuts, several agencies have already been identified as potential targets for merging or elimination. Among them are the Agence bio, which promotes organic farming, the Agence de l'environnement et de la maîtrise de l'énergie (Ademe), and the Office français de la biodiversité (OFB). In January, Valérie Pécresse, the president of the Île-de-France region, suggested that the Ademe should be abolished due to overlapping responsibilities with other agencies. The Rassemblement National party has also called for the suppression of 80 agencies, including the Commission de régulation de l'énergie and the Commission nationale du débat public.

De Montchalin’s announcement is part of a larger trend observed over the past decade, where the number of state agencies has already been reduced by 25%. However, critics argue that such measures could lead to inefficiencies and a reduction in public services. The former president of the Court of Auditors, Pierre Moscovici, noted that while many agencies require reform, few should be outright eliminated.

The minister defended the need for these cuts by stating, "The state has become difficult to understand for the French people and creates inefficiencies. We must reduce our complexity to create a stronger, more effective state on the ground." She further emphasized the importance of accountability in managing public funds, saying, "There is no money from the state; there is only money from the French people. We have a duty of rigor and seriousness to account for our actions."

In light of these proposed changes, the government is also expected to conduct a thorough review of agency functions. A Senate commission is set to hear de Montchalin’s proposals in mid-May, where she will provide more details on which agencies will be affected and how the government plans to implement these changes without causing social disruption.

Despite the government's assertions of efficiency, the proposed cuts have sparked concern among public sector unions and opposition parties. They argue that reducing the number of agencies could lead to a decline in service quality and accessibility for citizens. As the government prepares for these significant transformations, the implications for public employment and service delivery remain a central point of contention.

As France navigates these fiscal challenges, the outcome of de Montchalin's proposals will be closely monitored by both supporters and critics alike. The government's commitment to fiscal responsibility will be tested against the backdrop of public service needs and employment stability. With the budget vote approaching, the stakes are high, and the ramifications of these decisions will be felt across the nation.