French Government Collapses After No-Confidence Vote

PARIS, Sept. 9 (Reuters) - France’s minority government led by Prime Minister François Bayrou fell on Monday after lawmakers voted 364-194 to reject his austerity-driven budget, forcing his resignation and plunging the country into fresh political turmoil.

Nut Graf Bayrou’s downfall underscores deep divisions in the National Assembly over plans to cut €44 billion in spending to tame a public debt equivalent to 114 percent of GDP. The collapse hands President Emmanuel Macron the urgent task of naming a fifth prime minister in less than two years.

Key Details

  • What happened? Parliament passed a no-confidence motion against Bayrou’s cabinet, defeating his proposal to reduce the budget deficit.
  • Who’s involved? Centrist Prime Minister François Bayrou and President Emmanuel Macron. Opposition from both left-wing and far-right parties united against the plan.
  • When? The vote took place Monday, Sept. 8, and Bayrou will formally resign on Tuesday, Sept. 9.
  • Where? Assemblée Nationale, Paris.
  • Why? Lawmakers objected to deep cuts to public services and social programs amid soaring debt and a fragmented legislature lacking any clear majority.

Political Fallout

  • President Macron must appoint a new prime minister “in the coming days,” with options ranging from another centrist ally to a technocrat or a moderate socialist.
  • Both Marine Le Pen (far right) and Jean-Luc Mélenchon (far left) have called for snap elections, but Macron has resisted dissolving the National Assembly.
  • A caretaker government will handle routine duties until a successor is named, as required by the constitution.

Budgetary and Economic Implications

Lawmakers had balked at Bayrou’s plan to slash €44 billion by 2026, including cutting two public holidays and trimming welfare benefits. France’s deficit stood at 5.8 percent of GDP in 2023-nearly double the EU ceiling-and debt servicing costs are the highest in the eurozone outside Greece.

What’s Next?

  • New Prime Minister: Macron’s choice faces the same hurdle of securing support in a deeply divided parliament.
  • Potential Snap Election: If gridlock persists, Macron could dissolve the Assembly, triggering elections within 20-40 days.
  • Market Watch: Fitch, Moody’s and S&P reviews are due this autumn, and any sovereign downgrade could raise France’s borrowing costs.

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