Overview

• Lawmakers vote Monday afternoon, with François Bayrou widely expected to lose after failing to secure a majority.
• Bayrou tied the vote to a €44 billion savings package that would scrap two public holidays and freeze spending to rein in a deficit nearly twice the EU limit.
• Parties from the hard left to the far right have vowed to oust him, with leaders saying the government will fall.
• French 10-year bond yields have climbed above Spain, Portugal and Greece and are nearing Italy’s, raising concerns about borrowing costs and downgrade risk.
• If the government falls, Bayrou would remain in a caretaker role while Macron decides on appointing a new prime minister or risking new elections, as a Sept. 10 ‘Bloquons tout’ protest day is planned.