Overview

• François Bayrou resigned after losing a confidence vote over his €44 billion adjustment plan and will stay on in a caretaker role until the handover.
• The Élysée directed Lecornu to consult all parties to secure adoption of a national budget before proposing a new cabinet.
• Reporting indicates the rejected fiscal package will likely need to be softened to attract support, with Socialists seen as pivotal and the far right setting red lines.
• Protest actions branded “Bloqueemos todo” are planned for Wednesday with about 80,000 police deployed, a nationwide union strike is slated for September 18, and Fitch is set to review France’s rating this week.
• The transfer of power at Matignon is scheduled for Wednesday, and Lecornu brings continuity as Macron’s youngest-ever defense minister who championed a €413 billion military modernization plan.