France’s parliament voted on Monday to bring down the government of Prime Minister François Bayrou, rejecting his deficit-reduction plan and plunging President Emmanuel Macron into yet another political storm.
Lawmakers cast 364 votes against Bayrou and his minority cabinet, compared with 194 in his favour, ending the nine-month tenure of the veteran centrist who had staked his survival on taming the country’s ballooning national debt.
Bayrou, who will formally tender his resignation on Tuesday, had sought to win backing for a budget plan that included €44 billion ($51.5 billion) in savings. France’s deficit stands at nearly double the European Union’s 3% ceiling, while its debt has risen to 114% of GDP.
“You have the power to bring down the government, but you do not have the power to erase reality,” Bayrou told lawmakers before the vote. “Reality will remain relentless: expenses will continue to rise, and the burden of debt, already unbearable, will grow heavier and more costly.”
The defeat leaves Macron searching for his fifth prime minister in less than two years, with his office saying a replacement will be named in the coming days. Opposition leaders, however, argue the crisis has now engulfed the presidency itself.
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“This moment marks the end of the agony of a phantom government,” far-right leader Marine Le Pen said, renewing calls for a snap election. Hard-left firebrand Jean-Luc Mélenchon went further, declaring on X that “Macron is now on the front line facing the people. He too must go.”
Macron has so far resisted pressure to dissolve parliament again, but his options remain limited. He could appoint another centrist from his own minority bloc, reach out to conservatives, or even turn to a moderate socialist or technocrat. Each path risks further gridlock, as no faction commands a majority in the fractured National Assembly.
Finance Minister Eric Lombard acknowledged that deficit-cutting efforts would inevitably be watered down under any new coalition.
The collapse of Bayrou’s government adds to unease about France’s finances. The country already runs the highest budget deficit in the euro zone relative to GDP and pays more to service its debt than Spain. Yields on French bonds have risen, with spreads against Germany’s benchmark bonds at their widest in four months.
Financial markets largely anticipated Bayrou’s failure, softening immediate reactions. But analysts warn that ratings agencies may strike soon. Fitch is due to review France’s sovereign rating on Friday, with Moody’s and S&P Global set to follow in October and November. A downgrade would drive up borrowing costs further.
The opposition Socialists have floated an alternative budget that would impose a 2% wealth tax on fortunes above €100 million, aimed at raising €22 billion. Such a plan, however, would clash directly with Macron’s pro-business reform agenda.
Beyond parliament and markets, discontent is brewing among ordinary citizens. Protest groups are mobilising, with a grassroots movement called “Bloquons Tout” (“Let’s Block Everything”) urging nationwide disruption on Wednesday. Trade unions are also planning strikes the following week.
