Overview

• An official decree published in the Journal Officiel convenes an extraordinary parliamentary session for 8 September under Article 49.1 for the prime minister’s policy statement and confidence vote.
• François Bayrou courted business leaders at the Medef’s REF event and invited party leaders to talks from 1 September, but most opposition groups say they will vote against, La France insoumise refuses a meeting, and the Rassemblement national urges a return to the polls.
• Key flashpoints in the savings plan include scrapping two public holidays worth about €4.2 billion, a freeze on social‑benefit indexation, a change to the retirees’ tax abatement, and higher contributions from wealthy households, with the government signaling possible adjustments.
• Market nerves have grown since the confidence‑vote announcement, with Paris equities weaker and France’s 10‑year yield climbing to roughly 3.5% near Italy’s level, while Medef’s leader rejects any revival of a wealth tax.
• The government’s fall would jeopardize the early‑October timetable to present the 2026 finance and social‑security bills, throwing the budget process into uncertainty without a clear parliamentary majority.