French Prime Minister François Bayrou faces a critical confidence vote on September 8, 2025, regarding his €44 billion austerity plan, which aims to slash two public holidays, freeze welfare payments, and forgo inflation tax adjustments. Opposition parties, including the National Rally, France Unbowed, Greens, and Socialists, have pledged to reject the proposal unless it is significantly revised.
This vote comes amid increasing political tensions, with Bayrou standing firm on his plan despite the risk of government collapse. A defeat could lead President Emmanuel Macron to appoint a new prime minister or call for snap elections, further destabilizing the already tumultuous political climate in France.
Financial markets have reacted negatively to the uncertainty, with French 10-year bond yields rising to 3.51% and the CAC-40 index dropping approximately 2%. Anticipation of widespread protests is building, with demonstrations planned for September 10, potentially escalating public dissent against the government's austerity measures.
These developments mirror recent political upheavals in Europe, such as Inga Ruginienė's election as Lithuania's Prime Minister amid a corruption scandal. As the situation unfolds, the eyes of the EU will remain fixed on France, where the implications of Bayrou's austerity plan could reverberate across the continent.
