Overview

• The prime minister is constitutionally required to submit his government's resignation, with a caretaker period expected until the president decides next steps.
• Opposition parties from the far left to the far right united to defeat the minority government, reflecting a fragmented National Assembly with no stable majority.
• Bayrou’s failed plan sought about €44 billion in 2026 savings by freezing most welfare spending, curbing hiring, and scrapping two public holidays to tackle a 5.8% deficit and debt near 114% of GDP.
• Market watchers warned of widening bond spreads and potential rating pressure, while unions and activists prepared street actions and sector strikes in the coming days.
• Macron faces choosing a fourth prime minister in 12 months or considering new elections, as National Rally leaders press for a dissolution and no consensus successor has emerged.