French Prime Minister Francois Bayrou risks losing the government after he called a vote of confidence by parliament for September 8th. The vote of confidence has been called after the socialist coalition partners of the minority government have declared that they will vote against a sweeping budget cuts bill proposed by Premier Bayrou.
The budget bill aims to cut up to €44 billion in government expenditure and slash two public holidays among other measures. The Prime Minister is insisting that the bill is necessary to begin turning around the fiscal situation which is currently violating EU regulations. Prime Minister Bayrou also stated that French public debt is rising too fast after having increased by up to €2 trillion in the past decade alone. French public debt stands at around €3.35 trillion with the public deficit coming at 5.8% in 2024 (168 billion). France’s public debt is currently at 111.4% of GDP.
France’s ten year-note rose at 2.3% yesterday following the premier’s announcement with the stock market taking a 1.64% dip.
Prime Minister Bayrou was appointed Prime Minister last December after Michel Barnier was ousted in a no-confidence vote. French President Emmanuel Macron leads a minority government by his Ensemble bloc which is the second largest group in parliament. The largest group in parliament is National Rally.
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