French President Emmanuel Macron is set to appoint a new prime minister following the collapse of Francois Bayrou’s government over unpopular budget reforms.
Paris
French President Emmanuel Macron is searching for his fifth prime minister in under two years after Prime Minister Francois Bayrou’s government collapsed following a parliamentary confidence vote. Bayrou, who proposed unpopular budget-tightening measures, suffered a 364-194 defeat and will formally resign on Tuesday. Macron now faces the challenge of appointing a successor capable of navigating a fragmented parliament and passing next year’s budget amid a deficit nearly double the EU’s 3% ceiling and a debt ratio of 114% of GDP.
Defence Minister Sebastien Lecornu is among the potential candidates, alongside centre-left or technocratic options. While Socialists are pressing for a left-wing government, the far-right National Rally is calling for a snap election, which Macron has dismissed. The president, in office since 2017, has no set rules or timeframe for appointing a new prime minister, but a decision is expected soon.
Market reaction was muted, with Bayrou’s departure largely anticipated, though Fitch’s sovereign rating review on Friday is a key upcoming test. Businesses expressed concern over the political instability slowing investment and hiring, particularly in innovation sectors. Meanwhile, widespread protests are planned on Wednesday under the “Let’s Block Everything” campaign, echoing the 2018-19 Yellow Vest demonstrations. Labour unions have also announced strikes and protests on September 18, signaling continued public unrest amid the political uncertainty.
