France's Debt Crisis: PM François Bayrou Ousted In Confidence Vote Over Spending Cuts, Macron Seeks New PM

(MENAFN- Live Mint) Legislators in France on Monday (September 8) toppled Prime Minister François Bayrou in a sweeping 364-194 confidence vote, plunging Europe's second-largest economy into a new political crisis. President Emmanuel Macron now faces the challenge of appointing a fourth prime minister in 12 months.

Bayrou's minority government , appointed last December, fell after a failed gamble to secure parliamentary backing for deep public spending cuts aimed at addressing France's ballooning debt.

Bayrou ousted over spending cuts

Bayrou had sought a vote of confidence to push through €44 billion ($51 billion) in spending reductions for 2026, following a 5.8% GDP deficit last year, well above the EU ceiling of 3%.

“The greatest risk was to not take one, to let things go on without changing anything, to go on doing politics as usual,” Bayrou told the National Assembly in his final speech.“Submission to debt is like submission through military force. Dominated by weapons, or dominated by our creditors... we lose our freedom.”

Instead of consolidating support, lawmakers from left-wing and far-right parties united to oust his government, highlighting the fragility of Macron's centrist alliance in a splintered parliament.

Macron's precarious political landscape

Macron , 47, retains control over foreign policy and national security but his domestic ambitions are increasingly under threat. The president's decision to dissolve the National Assembly in June 2024 backfired, leaving his pro-European centrist bloc without a workable majority.

The ouster of Bayrou follows the short tenures of Gabriel Attal and Michel Barnier as prime ministers, underscoring Macron's struggle to maintain parliamentary support.

Rising opposition pressures

Marine Le Pen, leader of the far-right National Rally, has called for another legislative election.

“A big country like France cannot live with a paper government, especially in a tormented and dangerous world,” Le Pen said in the National Assembly, signaling her party's readiness to seize power if another snap election is held.

Pressing economic challenges

France 's public debt stood at €3.346 trillion, or 114% of GDP, at the end of Q1 2025. Debt servicing accounts for approximately 7% of state spending. Macron's next prime minister will inherit Bayrou's pressing budget challenges, alongside international concerns including wars in Ukraine and Gaza and evolving US policy under President Donald Trump.

Bayrou had warned that failure to cut spending would worsen the debt crisis :“You have the power to overthrow the government, but you do not have the power to erase reality. Reality will remain inexorable. Spending will continue to increase and the debt burden - already unbearable - will grow heavier and more costly.”

(With AP inputs)

Also Read | Russia's largest air attack on Ukraine, govt complex hit, 4 dead: What we know

MENAFN08092025007365015876ID1110033405