France in Turmoil as Premier’s Move Risks Government Falling

French Prime Minister Francois Bayrou’s decision to call a confidence vote on his €44 billion ($51 billion) budget plan for 2026 could very well bring down the government as soon as next month.

Bayrou considers his proposed spending cuts and taxes vital to avert disaster for the public finances. But the three largest opposition parties in the National Assembly have all indicated they’d vote against the motion on Sept. 8.

As European neighbors such as Italy make comparative progress in taming deficits, France’s fragile finances — and political turmoil — are back at the forefront of investors’ attention.