Overview

• Prime Minister François Bayrou asked lawmakers to back his austerity plan in an extraordinary parliamentary session on September 8, tying his government’s survival to the vote.
• The far-right National Rally, the hard-left France Unbowed, the Greens and the Socialists have all said they will oppose the government, making defeat likely.
• Financial markets slumped after the announcement, with the CAC 40 down about 2% on Tuesday, major bank shares sliding more than 6% and 10-year yields rising to roughly 3.5%.
• Nationwide protests are planned for September 10 against the package, which includes scrapping two public holidays and freezing welfare and tax brackets at 2025 levels.
• Ministers signaled all options are on the table if the government falls, as calls grew from Marine Le Pen for a dissolution and from Jean-Luc Mélenchon for Macron to resign.