US EditionFrench minister won't rule out snap election after PM Bayrou's confidence-vote gamble
Prime Minister Francois Bayrou's minority government faces collapse after opposition rejects his 2026 budget plan aiming to reduce France's 5.8% GDP deficit, risking political and financial instability.
- On Monday, Prime Minister Francois Bayrou called a confidence vote for September 8 on his debt-cutting plan, jolting markets and sparking political tension in France.
- To rein in a swollen deficit, Bayrou proposed a 2026 budget with around 44 billion euros in tightening, arguing cuts are needed as the deficit hit 5.8% of GDP in 2024 and debt grew by 2 trillion euros recently.
- Opposition parties immediately signalled rejection, with National Rally, Greens and Socialists opposing Bayrou and his unpopular plan to cut two public holidays, while BNP Paribas and Societe Generale shares fell more than 6%.
- If Bayrou is unseated, President Emmanuel Macron could appoint a new prime minister to tackle the 2026 budget or call fresh elections, which analysts say may not solve fiscal issues.
- Markets show strain as French 10-year government bond yields briefly rose to 3.53% before settling around 3.50%, while Capital Economics warns the budget deficit will prolong fiscal strain and Nour Al Ali says political instability risks French bonds' core status.
17 Articles
17 Articles
Faced with the rejection of his budget savings plan, François Bayrou launched a go-all Monday, August 25th for his return. At his request, Emmanuel Macron will convene an extraordinary parliamentary session on August 8th...
French minister won't rule out snap election after PM Bayrou's confidence-vote gamble
France could find itself heading for another snap parliamentary election, a government minister suggested on Tuesday, after opposition parties said they would vote to oust Prime Minister Francois Bayrou and as French markets tumbled.
Will France look for a new PM? Why can't it get one who stays?
French Prime Minister Francois Bayrou's government appears set to fall in the vote of confidence next month as parties across the spectrum —from far-right National Rally (RN) to far-left France Unbowed— have vowed to vote against him over budget proposals.
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