France plunges back into crisis after PM Bayrou's confidence-vote backfires


French Minister for Economy, Finance, Industrial and Digital Security Eric Lombard talks to journalists after a meeting with French Senators about French government's budgetary orientations for 2026, at the Bercy Economy and Finance Ministry in Paris, France, July 24, 2025. REUTERS/Gonzalo Fuentes/File Photo

PARIS (Reuters) -France found itself mired in yet another crisis on Tuesday, after Prime Minister Francois Bayrou's gamble to win backing for his deeply unpopular debt-reduction plan backfired, plunging the country deeper into political and financial instability.

French markets tumbled after Bayrou jolted the political establishment out of its summer slumber on Monday with his unexpected move to seek a September 8 confidence vote on his debt-cutting plan. His proposal was roundly rejected by opposition parties, who said they would relish the opportunity to cut short his minority government's time in office.

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