Overview
- Prime Minister François Bayrou confronts a no‑confidence vote expected to unseat him, which would mark the fourth change of premier in three years.
- French 10‑year yields have climbed to unprecedented levels for the country, surpassing Greece and Italy, and the spread over German Bunds has widened.
- Public debt stands around 113–114% of GDP and the deficit is near 5.8–6% of GDP, with annual interest costs reported above €66 billion.
- Fitch has France under review with a decision slated for Sept. 12, while the IMF urges a credible consolidation path including deficit cuts of about 1.1% of GDP in 2026 and 0.9% annually thereafter.
- Bayrou’s €44 billion consolidation package of tax hikes and spending cuts—including scrapping two public holidays and freezing social outlays—faces broad opposition and is drawing calls for protests and strikes.