Paris (TDI): France was thrown into deeper political turmoil on Monday after lawmakers voted to oust Prime Minister François Bayrou, dealing a fresh blow to President Emmanuel Macron as he scrambles to appoint his fifth head of government in under two years.
Bayrou, 74, who took office only nine months ago, had called the confidence vote in a bid to secure backing for his austerity drive aimed at reining in public spending. France’s deficit is nearly twice the European Union’s 3 percent ceiling, while national debt has climbed to 114 percent of GDP.
His plan to slash next year’s budget by €44 billion ($51.5bn) was rejected by opposition parties, many of which are already looking ahead to the 2027 presidential race. With Bayrou’s defeat, Macron must now weigh whether to stick with allies from his centrist minority, reach out to conservatives, or gamble on appointing a moderate from the left. A technocratic government is also under consideration, though none of these options would deliver a stable majority in parliament.
Finance Minister Eric Lombard admitted before the vote that any new government would likely water down the deficit-reduction program. Market jitters have already surfaced, with French bond spreads over German 10-year debt reaching their widest in four months, according to Reuters.
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Bayrou, addressing parliament before the motion, warned that “expenses will continue to rise, and the burden of debt, already unbearable, will grow heavier.” He argued that France’s “very survival is at stake.”
The turmoil comes as rating agencies prepare reviews of France’s creditworthiness. Fitch, which already maintains a negative outlook, is scheduled to issue an update on September 12, followed by Moody’s and S&P Global in the months ahead. A downgrade could raise borrowing costs and complicate Paris’s fiscal recovery.
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Macron’s advisers say he remains reluctant to dissolve parliament and call a snap election, despite mounting pressure from both the far right and far left. Instead, talks with the Socialists are being explored, though their counter-budget, which includes a wealth tax of 2 percent on fortunes above €100 million, runs counter to Macron’s pro-business reform agenda.
