National Assembly votes 364 to 194 to topple minority government over controversial budget cuts
French Prime Minister François Bayrou has been ousted from office after losing a confidence vote he himself called, with the National Assembly voting by 364 to 194 to bring down his minority government. The defeat marks France’s second government collapse in less than nine months and plunges the eurozone’s second-largest economy deeper into political turmoil.
The 74-year-old centrist prime minister, who had been in office for just nine months, gambled on the vote to push through his controversial budget plans featuring €44 billion (£37.8 billion, $51.3 billion) in spending cuts. Opposition parties from across the political spectrum united against him, exceeding the 289 votes needed to topple the government.
The result leaves President Emmanuel Macron searching for his fifth prime minister in less than two years, with no clear candidate capable of commanding parliamentary support in the deeply fractured National Assembly.
Opposition Unites Against Austerity Measures
Bayrou’s downfall came after he failed to win backing for his 2026 budget aimed at reducing France’s deficit from 5.8% of GDP to 4.6%. The proposals included freezing welfare and pension spending at 2025 levels and controversially scrapping two public holidays.
Far-right National Rally president Jordan Bardella declared before the vote that “the miracle did not happen,” referring to failed attempts to broker a compromise. We will never vote in favour of a government whose decisions are making the French suffer,” he said.
Hard-left leader Jean-Luc Mélenchon went further, declaring “Macron is chaos” and calling for the president’s resignation. “Emmanuel Macron must go. He is responsible for the crisis,” Mélenchon wrote on social media platform X.
The Socialist Party, which had initially considered supporting Bayrou, ultimately joined the opposition. Arthur Delaporte, a Socialist MP, told CNBC the government had proposed “too many cuts to public services, to pensions and on social benefits and it’s not acceptable.”
Even the Communist Party, Greens, and smaller opposition groups united in the vote against Bayrou, demonstrating the complete isolation of Macron’s centrist coalition in parliament.
Unprecedented Political Instability
The vote represents an extraordinary moment in French politics. Bayrou himself triggered the confidence vote, an unusual move designed to force parliament to back his budget plans or take responsibility for rejecting them.
Our country is in danger, because we are at risk of over-indebtedness,” Bayrou warned in his final speech to lawmakers. He described the situation as “grave and urgent” and accused opposition parties of choosing “chaos over responsibility.
Former Bank of France governor Jean Claude Trichet told CNBC that Paris was confronting “the combination of a difficult situation in terms of fiscal balance and a very difficult situation, politically.
The political paralysis stems from Macron’s disastrous decision to call snap parliamentary elections in June 2024. The vote, intended to provide clarity, instead produced a hung parliament split between three hostile blocs: a left-wing alliance, Macron’s centrists, and the far-right National Rally.
Markets React to Growing Uncertainty
Financial markets had anticipated Bayrou’s defeat, with the Paris CAC 40 index falling 1.4% in afternoon trading on Monday ahead of the vote. French government borrowing costs have risen, with the 10-year bond yield climbing to 3.43% and the 30-year yield reaching 4.35%.
Deutsche Bank strategists warned in a note to clients that “President Macron is expected to nominate a new PM that could achieve a majority to pass the budget. This would probably require the backing of the centre-left Socialists as the right-wing populist National Rally has called for snap parliamentary elections.”
The spread between Italian and French 10-year bond yields has fallen to just 9.8 basis points, its lowest level since 1999, signalling that investors now view France’s political risk as comparable to Italy’s.
Pascal Cagni, president of C4 Industries, told CNBC the political disarray would not be resolved until France holds presidential elections in 2027. “The situation is unsustainable,” he said.
Constitutional Crisis Deepens
Bayrou’s defeat automatically blocks the 2026 budget bill, leaving France without a spending plan as it struggles with a deficit nearly double the European Union’s 3% limit. The country’s public debt stands at €3.346 trillion, or 114% of GDP.
Under the French constitution, Bayrou must now submit his government’s resignation to Macron. The cabinet will remain in a caretaker capacity handling day-to-day affairs until a successor is appointed.
If no government is in place by the end of 2025, a special provision would allow the 2025 budget to be extended into 2026, ensuring continuity of state revenue and spending but preventing any reforms to address the deficit crisis.
Andrew W M Smith, historian of modern France at Queen Mary University London, predicted “the current cycle will continue” with “another cobbled together government with, notionally, centrists who will try to put together a patchwork of measures.”
Macron’s Options Narrow
The president faces increasingly unpalatable choices. He could appoint another prime minister from centrist ranks, but they would likely face the same parliamentary arithmetic that doomed both Barnier and Bayrou.
Alternatively, Macron could reach out to the left or right for a candidate, though this would require major policy concessions that contradict his centrist agenda. Defence Minister Sébastien Lecornu and former Socialist prime minister Bernard Cazeneuve have been mentioned as potential candidates.
The constitution now permits Macron to dissolve parliament again, as the required one-year waiting period since the last elections has passed. However, current polls suggest another fragmented result, with the far-right National Rally leading but unlikely to secure an outright majority.
Mélenchon has threatened to trigger impeachment proceedings against Macron at the end of September if the president refuses to resign. While Macron has insisted he will serve until his term ends in 2027, calls for his departure are growing louder across the political spectrum.
Former President Nicolas Sarkozy described Bayrou’s confidence vote gambit as “political suicide,” while François Hollande, another former president, blamed Macron for allowing the situation to deteriorate so badly.
France Faces Prolonged Uncertainty
With no clear path forward, France appears headed for months of continued instability. General strikes are already planned for 10 and 18 September to protest against austerity measures, threatening further disruption.
The political crisis has weakened France’s standing in Europe at a crucial time. Hall Gardner, professor emeritus at the American University of Paris, noted that “Macron has lost all the popularity he held in 2017” and his “inability to govern with a working majority” has undermined his ability to “lead the way” in European affairs.
For ordinary French citizens, the governmental chaos means continued uncertainty over public services, pensions, and economic policy. Public hospitals suffer from shortages of doctors and nurses, while rural train lines face closure due to budget constraints.
The vote marks only the second successful no-confidence motion in the Fifth Republic’s history, with the previous one occurring 62 years ago in 1962. As France enters uncharted political waters, the question remains whether any leader can bridge the deep divisions paralysing the nation’s democracy.
Follow for more updates on Britannia Daily
