French PM Bayrou Ousted After No-Confidence Vote Amid Political Crisis

French Prime Minister François Bayrou has resigned following a no-confidence vote in the National Assembly, marking the fifth prime minister appointed by President Emmanuel Macron since 2022 amid ongoing political instability. Bayrou's proposed austerity budget, which aimed to reduce France's fiscal deficit through €44 billion in spending cuts, failed to gain parliamentary support, reflecting deep divisions in a hung parliament split among left, center, and far-right factions. Despite the political turmoil, financial markets showed relative stability, though borrowing costs edged higher, signaling investor caution. Macron faces the challenge of appointing a new prime minister capable of bridging political divides to pass a budget and avoid further government collapses, with speculation that he will choose a trusted centrist figure. Nationwide protests are planned in response to austerity measures, intensifying public dissatisfaction. Analysts warn of potential credit rating downgrades amid fiscal uncertainty, though a financial crisis is not imminent.