"French PM Risks Confidence Vote Amid Budget Challenges, Declares 'Our Country is in Danger'"

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Aug 26 2025

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Source: CNBC

Government Confidence Vote: France's minority government, led by Prime Minister Francois Bayrou, faces potential collapse as opposition parties refuse to support his budget cut plans in a confidence vote scheduled for September 8.
Economic Context: The French economy is struggling with a high public deficit of 5.8% of GDP and sluggish growth, prompting the government to propose significant fiscal tightening measures, including freezing welfare spending and cutting public holidays.
Political Reactions: Opposition leaders from various parties, including the far-right National Rally and the Socialists, have indicated they will vote against Bayrou, suggesting a lack of parliamentary confidence that could lead to government instability.
Market Implications: Analysts warn that if the government loses the confidence vote, President Macron may need to appoint a new Prime Minister or call snap elections, which could further fragment the political landscape and impact investor sentiment towards French assets.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.