Overview

• François Bayrou formally resigned after the National Assembly rejected his confidence motion by 364 to 194, ending his nine-month government.
• Bayrou had tied his fate to a 2026 fiscal plan with about €44 billion in cuts and revenue measures aimed at curbing a debt near 114% of GDP.
• The presidency said a new prime minister will be appointed in the coming days and signaled no snap legislative elections for now, with Bayrou set to stay on in a caretaker role until a successor is named.
• Street actions branded “Block everything” are scheduled for Wednesday and trade unions have called a mass strike for September 18.
• Investors flagged rising sovereign risk as France’s risk premium topped Italy’s for the first time in decades, and Fitch is due to review the country’s rating on Friday.