Overview

• The far-right National Rally, hard-left France Unbowed, the Greens and the Socialist group have all signalled they will vote against the government in the National Assembly.
• If the government loses the vote, it must resign, leaving President Emmanuel Macron to either appoint a new prime minister, keep a caretaker cabinet or call snap legislative elections.
• Financial markets weakened on the announcement as the CAC 40 fell, French bank shares dropped sharply and sovereign bond yields rose on wider risk premiums.
• Nationwide protests branded a “block everything” action are planned for Sept. 10, backed by left parties and some unions, echoing past social unrest.
• Bayrou’s plan targets roughly €44 billion in 2026 savings, including cutting two public holidays and freezing welfare spending and tax brackets, which he argues is needed to address a 5.8% deficit and high public debt.