French PM Bayrou will seek confidence vote over budget plans

French PM Bayrou will seek confidence vote over budget plans


French Prime Minister Francois Bayrou will seek a high-stakes confidence vote in parliament on September 8 over unpopular plans to clean up France’s public finances.

Bayrou’s move will gauge whether he has enough support in a fragmented parliament for his 44 billion euro ($51.51 billion) budget squeeze as he tries to tame a budget deficit that hit 5.8% of gross domestic product last year, nearly double the official EU limit of 3%.

French Prime Minister Francois Bayrou.

Sopa Images | Lightrocket | Getty Images

If he loses the confidence vote, Bayrou’s minority government will fall.

“We face an immediate danger, which we must tackle … otherwise we have no future,” Bayrou told a news conference about the debt burden. “Our country is in danger.”

Bayrou said the confidence vote would focus on whether lawmakers agree with the gravity of the danger, and choose the path ahead to fix it.

Bayrou’s efforts at belt-tightening have come under fire from both the left and the right, meaning that he faced the risk of a no-confidence vote like the one that toppled his predecessor, Michel Barnier, in late 2024 after just three months in office.

With his announcement on Monday, Bayrou is seeking a vote on his government’s fate before the opposition calls a no-confidence vote.

The confidence vote will take place just two days before planned protests, which have been called for on social media and backed by leftist parties and some unions.

The September 10 call for general protests has drawn comparisons to the Yellow Vest protests that erupted in 2018 over fuel price hikes and the high cost of living.

Before that, taxi drivers are expected to restart demonstrations on September 5 against the government’s plans to overhaul compensation for medical trips.

The “gilets jaunes” protests spiralled into a broader movement against President Emmanuel Macron and his efforts at economic reform.

Bayrou has proposed scrapping two public holidays and freezing welfare spending and tax brackets in 2026 at 2025 levels, not adjusting them for inflation.



Source

UK inflation cools markedly in January, boosting odds of Bank of England rate cut
World

UK inflation cools markedly in January, boosting odds of Bank of England rate cut

A customer looks at goods on a shelf in a supermarket on January 15, 2025 in London, England. Dan Kitwood | Getty Images News | Getty Images The U.K. inflation rate cooled to 3% in January, according to the latest figures from the Office for National Statistics (ONS). Economists polled by Reuters had expected the consumer price […]

Read More
More than 50% of enterprise software could switch to AI, Mistral CEO says
World

More than 50% of enterprise software could switch to AI, Mistral CEO says

Arthur Mensch, founder of Mistral AI, during the ‘Nvidia GTC’ meeting at the 2025 VivaTech conference in Paris, France, on Wednesday, June 11, 2025. Nathan Laine | Bloomberg | Getty Images NEW DELHI — More than 50% of enterprises’ current software could be replaced by AI, the CEO of Mistral AI told CNBC on Wednesday, […]

Read More
CNBC’s The China Connection newsletter: Businesses scramble to reach China’s growing experiences economy
World

CNBC’s The China Connection newsletter: Businesses scramble to reach China’s growing experiences economy

This report is from this week’s CNBC’s The China Connection newsletter, which brings you insights and analysis on what’s driving the world’s second-largest economy. You can subscribe here. The big story There’s nothing quite like the holiday rush in China for the Lunar New Year. The Beijing city streets start emptying out several days in advance […]

Read More