French Parliament Nears No-Confidence Vote Amid Debt Crisis

French President Emmanuel Macron faces mounting political turmoil as Prime Minister François Bayrou's administration has collapsed following a no-confidence vote triggered by Bayrou’s controversial proposal to cut €43.8 billion from public spending, including scrapping two national holidays. This marks the fifth leadership change since early 2024 in a deeply fragmented parliament, complicating efforts to address France’s significant fiscal challenges, including a public deficit forecast at 5.4% of GDP and a national debt exceeding €3.3 trillion. Despite calls from the opposition for snap elections or Macron’s resignation, the president is expected to appoint a new prime minister, likely more left-leaning, and push for more moderate budget cuts while focusing on foreign policy issues such as the Russia-Ukraine war. The political deadlock has sparked widespread protests and strikes, reflecting widespread dissatisfaction with austerity measures. Financial markets are watching closely as higher borrowing costs and political instability raise concerns about France’s ability to stabilize its economy, even as Macron continues to assert a prominent role on the global stage.