French PM Francois Bayrou calls for confidence vote over budget plan, fueling market unrest

[French flag with Eiffel Tower in the background]
querbeet

French Prime Minister Francois Bayrou said on Monday he will seek a confidence vote from parliament on September 8 as he seeks parliament backing for a €44 billion austerity package as part of the 2026 budget.

Bayrou framed the confidence vote as a necessary gamble to address urgent fiscal challenges, emphasizing the risk of inaction amid what he called "a moment of hesitation and turmoil" for the country.

However, the country’s three main opposition parties, including the far-right National Rally, the Greens, and the Socialist Party, said they would not back the confidence vote. This rejection raises the risk that Bayrou's minority government could collapse if he fails to secure enough parliamentary backing.

The move sparked a broad sell-off across French equities (CAC:IND [https://seekingalpha.com/symbol/CAC:IND]), with banks and construction under heavy pressure. Top losers include Société Générale (OTCPK:SCGLF [https://seekingalpha.com/symbol/SCGLF]) (OTCPK:SCGLY [https://seekingalpha.com/symbol/SCGLY]) -7.5%, BNP Paribas (OTCQX:BNPQF [https://seekingalpha.com/symbol/BNPQF]) (OTCQX:BNPQY [https://seekingalpha.com/symbol/BNPQY]) -6.6%, Crédit Agricole (OTCPK:CRARF [https://seekingalpha.com/symbol/CRARF]) (OTCPK:CRARY [https://seekingalpha.com/symbol/CRARY]) -6.5%, Vinci (OTCPK:VCISF [https://seekingalpha.com/symbol/VCISF]) (OTCPK:VCISY [https://seekingalpha.com/symbol/VCISY]) -6%, AXA (OTCQX:AXAHY [https://seekingalpha.com/symbol/AXAHY]) (OTCQX:AXAHF [https://seekingalpha.com/symbol/AXAHF]) -6.2%.

ETFs: (NYSEARCA:EWQ [https://seekingalpha.com/symbol/EWQ])

Currency: (EUR:USD [https://seekingalpha.com/symbol/EUR:USD])

MORE ON FRANCE

* EWQ: French Equities In A Global Context [https://seekingalpha.com/article/4805463-ewq-french-equities-in-a-global-context]
* European market in red as France's political risks mount [https://seekingalpha.com/news/4489042-european-market-in-red-as-frances-political-risks-mount]
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* Seeking Alpha’s Quant Rating on iShares MSCI France ETF [https://seekingalpha.com/symbol/EWQ/ratings/quant-ratings]
* Dividend scorecard for iShares MSCI France ETF [https://seekingalpha.com/symbol/EWQ/dividends/scorecard]