Overview

• French Prime Minister François Bayrou has averted a no-confidence vote after the Socialist Party agreed not to back the motion, citing his commitment to readdress pension reforms and education cuts.
• Bayrou proposed a three-month negotiation process involving unions and employers to explore potential adjustments to the controversial 2023 pension reform that raised the retirement age from 62 to 64.
• The Socialist Party emphasized their decision does not signify long-term support, warning they could withdraw backing if their demands are not met in future negotiations.
• Bayrou’s minority government remains fragile as it navigates upcoming budget debates, with opposition from both far-left and far-right parties looming as a persistent threat.
• The French government faces significant fiscal challenges, including a €53 billion deficit reduction plan, with potential consequences for political stability and compliance with EU financial rules.