Budget cuts in France, government at risk - Prime Minister Bayrou will face a confidence vote on September 8
France's minority government is facing a growing threat of collapse next month. The three main opposition parties said they would not support a confidence vote that Prime Minister François Bayrou has called for September 8 over his plans for major budget cuts.
The far-right Rassemblement National party, the Greens and later the Socialists, whose vote is expected to be decisive for Bayrou's fate, said they see no reason to support him. If Bayrou loses the vote of confidence in the National Assembly, his government will fall.
Political uncertainty has rattled investors, pushing the risk spread between French and German bonds up 5 basis points to the highest level since mid-June. If the government falls, President Emmanuel Macron could immediately appoint a new prime minister, ask Bayrou to lead a caretaker government or call early elections. Macron lost the previous prime minister, Michel Barnier, in a no-confidence vote over the budget at the end of 2024, just three months after he took office.
Bayrou acknowledged that seeking a vote of confidence from a deeply divided parliament was a risky move. “Yes, it is dangerous, but it is even more dangerous to do nothing,” he said during a press conference, referring to the high public debt, which he described as the biggest risk for the country.
He said the confidence vote would serve as an indicator of whether there is enough support in parliament for his 44 billion euro budget cuts. The aim is to reduce the deficit, which last year reached 5.8% of gross domestic product, almost double the European Union's official limit of 3%. Bayrou has proposed canceling two public holidays and freezing welfare spending and tax brackets for 2026 at 2025 levels, without indexing them to inflation.
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