Prime Minister François Bayrou's government has been ousted from power following a decisive confidence vote in the French National Assembly on September 8, 2025. Lawmakers voted 364 against the government and 194 in favor, leading to Bayrou's immediate resignation.
This political upheaval intensifies France's ongoing political instability and fiscal challenges. Bayrou, who took office on December 13, 2024, faced significant opposition to his government's proposed €44 billion deficit-reduction plan. The plan included controversial measures such as eliminating public holidays and imposing taxes on pensioners, which united opposition parties including the National Rally, Socialist Party, Greens, and La France Insoumise. Their collective opposition to the confidence motion ultimately led to the government's downfall.
France's public debt has reached approximately 114% of its GDP, with the budget deficit standing at 5.8% in 2024, significantly exceeding the European Union's 3% target. Bayrou had sought parliamentary backing for austerity measures to address this mounting debt, warning of the consequences of inaction. His government's proposed budget aimed to cut the deficit to 4.6% by 2026.
Following the vote, Finance Minister Eric Lombard indicated that the deficit-reduction plan might be scaled back, acknowledging that a new administration would likely need to negotiate with left-wing parties, potentially diluting fiscal consolidation efforts. The political uncertainty has already impacted financial markets, with French bond yields rising and the euro experiencing volatility.
President Emmanuel Macron now faces the challenging task of appointing a new prime minister. This marks the fifth prime minister appointed during Macron's second term, highlighting the persistent instability since his decision to call snap elections in June 2024, which resulted in a fragmented parliament. The nation's political future remains uncertain as Macron considers his next steps amidst fiscal pressures and international geopolitical developments.