Overview

• Prime Minister François Bayrou asked President Emmanuel Macron to convene an extraordinary parliamentary session for a Sept. 8 vote tied to savings of about €44 billion to address a deficit that reached 5.8% of GDP last year.
• The National Rally, France Unbowed, the Greens and the Socialist Party said they will oppose the government in the confidence vote, jeopardizing Bayrou’s survival.
• Nationwide protests are planned for Sept. 10, organized on social media and backed by left parties and some unions, with echoes of the 2018 yellow vest movement.
• Financial markets weakened further, with the CAC 40 down about 1.6% on Monday and roughly 2% early Tuesday as French bond yields and risk premia rose.
• Ministers left options open if the government loses, with Justice Minister Gérald Darmanin not ruling out dissolution and Finance Minister Eric Lombard insisting the government still seeks a compromise.