US EditionFrance plunges back into crisis after PM Bayrou's confidence-vote backfires
France's government faces a confidence vote over plans to reduce the budget deficit by 1.5% of GDP amid rising debt projected to reach 116.3% of GDP, increasing economic instability.
- France plunged into a crisis on Tuesday after Prime Minister Francois Bayrou's confidence vote over his budget-cutting plan backfired.
- Bayrou called the vote to break a political deadlock over planned deficit cuts but knew opposition would table a no-confidence motion.
- Markets tumbled with the CAC40 falling 1.5% Tuesday and French bond yields hitting their highest levels since March amid political uncertainty.
- Bond trader Rupert Harrison noted that the persistent political deadlock is likely to upset the market, posing risks to borrowing costs.
- Analysts expect Bayrou's move could trigger his replacement or new elections, while France’s debt could exceed 116% of GDP this year, sustaining economic pressures.
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France is experiencing the next government crisis: Prime Minister François Bayrou wants to reduce the record deficit with tough austerity measures, but he could fall. Markets are already responding – bank shares are slipping. Why France is becoming a burden on Europe.
·Dortmund, Germany
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Mish Talk - Global Economic Trend AnalysisFrench Government on Verge of Collapse Over Debt Crisis, What’s Next?
by Mish Shedlock, Mish Talk: A vote of confidence is scheduled. Expect the government to fall. French Government Expected to Fall France24 reports PM faces new no-confidence vote over debt crisis Fears of a new political crisis swept through France on Tuesday as the minority government of Francois Bayrou appeared likely to be ousted in a […]
Coverage Details
Total News Sources33
Leaning Left5Leaning Right8Center8Last UpdatedBias Distribution38% Center, 38% Right
Bias Distribution
- 38% of the sources are Center, 38% of the sources lean Right
38% Right
L 24%
C 38%
R 38%
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