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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
France fears new political crisis after PM’s confidence-vote gamble
By Reuters
Updated:
5:59 AM EDT, Tue August 26, 2025
Source: Reuters
could find itself heading for another snap parliamentary election, a
government minister suggested on Tuesday, after opposition parties said
they would vote to oust Prime Minister Francois Bayrou and as French
markets tumbled.
Bayrou jolted the political establishment out of its summer slumber on
Monday with his unexpected move to seek a September 8 confidence vote
on his debt-cutting plan.
The country’s main opposition parties were quick to make it clear
that they would be voting against him and his minority government.
“We need a different Prime Minister and, above all, a different
policy,” lead Socialist lawmaker Boris Vallaud wrote on X.
Finance Minister Eric Lombard said the government was still hoping to
reach a last-minute deal with the opposition, but from the far-right to
the hard left, party leaders made clear that was unlikely to happen.
Jean-Luc Melenchon, of the hard left France Unbowed, went even further,
saying President Emmanuel Macron himself should leave.
“Emmanuel Macron must go. He is responsible for the crisis,”
Melenchon wrote on X.
Macron called a snap election in June last year which he said would
bring “clarity” - the very same words used by Bayrou on Monday to
explain why he was holding a confidence vote. But the 2024 snap
election only resulted in a more fragmented parliament, bringing no
clarity at all.
France’s blue chip CAC40 index was down nearly 2% in early trade on
Tuesday, having fallen 1.6% late on Monday. France’s 10-year bond
yield rose around 3 basis points in early trade to around 3.52%, its
highest since March. When a bond’s yield rises, its price falls.
Justice Minister Gerald Darmanin told France 2 TV that while the
government was still working on trying to find a compromise agreement,
he “could not rule out” the scenario of another costly dissolution
of parliament.
Macron, who is the only person who can dissolve parliament and launch
fresh legislative elections, has yet to comment on Bayrou’s move,
although Bayrou’s entourage said on Monday that Macron had signed off
on the plan.
Asked about comments by other politicians that the International
Monetary Fund may have to intervene if France doesn’t get its
finances in order, Lombard replied: “This is a risk that is in front
of us.”
“It is a risk that we would like to avoid, and one which we should
avoid, but I cannot tell you that this risk does not exist,” he
added.
The IMF usually only offers financial support to countries that find
themselves shut out of financial markets due to dire budget crises, and
even then only on condition of making serious reforms. France is very
far from being in that situation.
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