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French taxi protests put PM's budget cutting resolve to the test

French taxi drivers protest regularly against proposed government cuts in cash for transporting patients to medical appointments and back, underlining the challenge facing Prime Minister Francois bayrou as he seeks next year's cutbacks.

Bayrou hopes to squeeze the budget by 40 billion euros ($45 billion) in 2026. The country's deficit is so large that Bayrou sees the tightening of belts as a civic duty.

Health spending is the second largest drain on the budget, after pensions. In an effort to cut costs, the government hopes that it can save 150 million euros on the 6 billion euro it pays annually to private ambulance and taxi firms to transport patients.

Since mid-May, cabbies from all over France have been protesting in Paris. Dozens of them have been arrested.

Some drivers from out of town have slept inside their cars, while others have blocked access to Paris airports. They have also threatened to do so at the French Open Tennis Tournament taking place outside the capital.

Sandra Vialatte is the head of a taxi company in the Loiret area south of Paris. She said that the government did not listen to industry proposals for lowering costs.

She said, "We know that there are ways to save money. We have tried to suggest them, but they shut the door on discussions."

France has a history of violating EU spending rules. It currently runs the largest public sector deficit of the Eurozone, estimated at 5.4% of the economic output for this year.

France's government plans to save 40 billion euros from its budget in order to meet the 4.6% deficit target for next year. This is, according to the government, a crucial first step toward reaching a EU ceiling of 3.0% by 2029.

Rating agencies are not pleased with France's budget problems, which are a hindrance to its efforts to increase defence spending in order to counter possible Russian aggression. The tariffs threatened by Donald Trump threaten to slow down the economic growth of the United States.

The independent public audit warned on Monday, in part because of the rising costs of medical transport and social welfare services, that the finances of the health and social welfare systems were "out-of-control".

Bayrou, who has been a debt hawk for a long time, promised to present a plan in early July that would allow everyone to share in the pain. He wants to drive home the point that France cannot control its public spending unless it makes collective efforts and sacrifices.

Bayrou, speaking on BFM TV Tuesday, said that "all French people" would have to put in an effort. He added that he "wouldn't target any French person at the expense of others."

Both the hard left and extreme right agree that Bayrou has done just that by singling out taxi drivers.

Pieyre Alexandre Anglade, a centrist politician, said that the government must hold firm if they are to meet the target of 40 billion euros in savings.

He said, "Things have gotten a bit out of hand with taxis over the past few years and the tap now needs to be shut off." "The government must stand firm." (1 dollar = 0.8825 euro) (reporting by Leigh Thomas, additional reporting by Gonzalo Fientes and Lucien Libert; editing by Hugh Lawson).

(source: Reuters)