French Prime Minister François Bayrou submitted his resignation to President Emmanuel Macron on Tuesday, just a day after his government collapsed in a heavy parliamentary vote, plunging the country into a new political and financial crisis and weakening the president’s position. Macron is expected to appoint a new Prime Minister within days, amidst a parliament divided between the left, far-right, and centrist factions.
International media expressed shock at the developments; The New York Times declared that France is now experiencing a “chronic state of instability,” while the Financial Times warned of a “crisis that could extend to the markets and the streets.” Süddeutsche Zeitung cautioned about a “major paralysis,” and El País emphasized the need for a swift solution that addresses the financial challenges.
The main parties maintained their positions: the far-right is demanding new elections, the radical left calls for the president’s resignation, and the Socialist Party asserts that the left, which led in the elections, is entitled to govern. Meanwhile, Macron aims to broaden his centrist coalition and negotiate with the Socialists, with names of potential ministers to succeed Bayrou being discussed.
The budget crisis was central to the vote against the government, as the proposed budget includes a reduction of €44 billion by 2026 to reduce debts that have reached 114% of GDP, at a time when borrowing costs have risen to 3.47%, awaiting a decision from Fitch Ratings on Friday regarding the credit rating.
Meanwhile, France is bracing for widespread social movements, with calls for strikes and demonstrations starting Wednesday under the slogan “Let’s paralyze everything,” supported by several unions. The Ministry of the Interior announced the deployment of 80,000 security personnel, while the Civil Aviation Authority predicted disruptions across all airports. This comes as Macron’s popularity has plummeted to its lowest levels since 2017.
