Overview

• François Bayrou resigned after losing a Sept. 8 confidence vote in the National Assembly by 364 to 194.
• President Emmanuel Macron named Sébastien Lecornu, formerly defense minister, as prime minister within hours, making him the seventh premier of Macron’s tenure.
• Nationwide protests and a general strike intensified this week with roadblocks, clashes with police, and more than 300 detentions reported.
• The trigger for the unrest is a contested fiscal plan centered on roughly €44 billion in annual spending cuts aimed at curbing high deficits and debt.
• Investors and European officials are watching France’s fiscal path as risk premiums widen, and Fitch is due to release an updated sovereign rating on Friday, with analysts also noting potential spillovers for neighbors such as Belgium.