France Faces Snap Election Threat Amid PM Bayrou Confidence Vote

France faces a significant political crisis as Prime Minister Francois Bayrou seeks a September 8 confidence vote on his debt-cutting plan, triggering opposition parties to vow to vote against him and push for a change in leadership and policy. The opposition spans from the far-right to the hard-left, with calls for President Emmanuel Macron to resign amid growing public dissatisfaction and political instability. Economic indicators reflect the turmoil, with the CAC40 index dropping nearly 2% over two days and France's 10-year bond yield rising to its highest level since March, signaling investor unease. Justice Minister Gerald Darmanin acknowledged the possibility of a costly dissolution of parliament, a decision that rests solely with Macron, who has not yet publicly responded. Previous snap elections have led to a fragmented parliament, and the current crisis raises concerns about further political fragmentation and economic uncertainty. Finance Minister Eric Lombard continues to seek a last-minute compromise, but prospects remain bleak as protests reminiscent of the 2018 Yellow Vest movement are anticipated.