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French Prime Minister's Government Collapses After No-Confidence Vote Over Unpopular Savings Plan

The event highlights the political instability and public resistance to austerity measures.
Key Metrics

14.62

Heat Index
  • Impact Level
    Medium
  • Scope Level
    National
  • Last Update
    2025-09-08
Key Impacts
Positive Impacts (2)
Gold
German Bunds
Negative Impacts (6)
EUR/USD
CAC 40 Index
French Government Bonds (OATs)
European Banking Sector
French Credit Default Swaps (5-yr)
Italian & Spanish Government Bonds (Peripherals)
Total impacts: 8 | Positive: 2 | Negative: 6
Event Overview

The event highlights the political instability and public resistance to austerity measures. The collapse of the government reflects the tension between fiscal responsibility and popular sentiment, indicating a broader challenge in implementing economic reforms.

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French Prime Minister Bayrou Loses Confidence Vote, Government Collapses
2025-09-09 06:04

French Prime Minister François Bayrou lost a no-confidence vote in parliament, with 364 MPs voting against him and 194 in support. This collapse of the government follows his attempt to push through an unpopular €44 billion savings plan, which included cutting two public holidays and freezing government spending. Bayrou will step down after only nine months in office, similar to his predecessor Michel Barnier, who also lost a no-confidence vote last December. The Élysée Palace will appoint a new prime minister soon, but President Macron faces limited options. Bayrou warned lawmakers that while they can bring down the government, they cannot change the reality of rising expenses and growing, unsustainable debt, and emphasized the broken social contract with younger generations. Macron's decision to call a snap election in 2024, following the National Rally's strong performance in the European Parliament elections, backfired, resulting in a fragmented parliament. Potential candidates for the new prime minister include Armed Forces Minister Sébastien Lecornu and Justice Minister Gérald Darmanin, but the role is seen as challenging due to the opposition from far-right and far-left parties, who have indicated they would call for a no-confidence vote if another centrist prime minister is appointed.

Total records: 1
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