Bayrou Government Ousted in No-Confidence Vote... Resigns After Nine Months
194 Votes of Confidence vs. 364 of No Confidence
Clash with Opposition over Next Year’s Austerity Budget
Macron Faces Calls for Accountability Amid Political Crisis
The government of Francois Bayrou in France was defeated in a no-confidence vote in the National Assembly on September 8 (local time). The Bayrou administration, which took office in December last year, resigned after just nine months, failing to complete a full year in office. The previous government led by Michel Barnier also collapsed after only three months, resulting in a series of short-lived administrations. This has placed President Emmanuel Macron, who appointed both as prime ministers, in a political crisis.
On this day, the French National Assembly voted on a confidence motion for the Bayrou government, with 194 votes in favor and 364 votes against, resulting in a decision of no confidence.
According to the French Constitution, the government must immediately resign if a majority of the total members of the National Assembly votes in favor of no confidence. As of this day, there were 574 seats in the National Assembly (with 3 vacant), making the threshold for passage 288 votes. Most opposition parties, except for the centrist and some right-wing blocs that make up the ruling coalition, voted for no confidence.
According to the French daily Le Monde, this is the first time in the history of the Fifth Republic that a government has fallen due to a no-confidence vote in the National Assembly.
Prime Minister Bayrou is scheduled to submit the government's resignation letter to President Macron on the morning of September 9. The Elysee Palace stated in a press release that President Macron would accept the resignation of the Bayrou government on September 9 and appoint a new prime minister soon.
The Bayrou government had been at odds with the opposition over next year's austerity budget. As of last year, France's public debt stood at 3.3 trillion euros, equivalent to 113% of the country's gross domestic product (GDP). In July, Prime Minister Bayrou announced guidelines for next year's budget, which included a freeze on government spending except for defense, the abolition of two public holidays, a 44 billion euro reduction in expenditures, and measures to increase tax revenue.
The opposition fiercely opposed these measures and threatened to pass a no-confidence motion as soon as the autumn regular session was convened. French public opinion was also strongly against the Bayrou government's budget plan for next year. In response, Prime Minister Bayrou requested a confidence vote in parliament on August 25, aiming to push through austerity measures with parliamentary support.
Before the vote, Prime Minister Bayrou warned lawmakers, "You have the power to overthrow the government, but not to erase reality," adding, "Expenditures will only continue to rise, and the already unbearable burden of debt will become even heavier and more costly."
With the resignation of the Bayrou government, France is set to welcome its fifth prime minister in less than two years, plunging the country into further turmoil.
This is also a political crisis for President Macron. The far-left parties have blamed President Macron and announced plans to submit an impeachment motion. Socialist Party leader Boris Vallaud demanded that President Macron take responsibility and appoint a prime minister from the left-wing bloc.
Marine Le Pen, floor leader of the far-right National Rally (RN) and a leading candidate for the next presidential election, emphasized that the only way to break the deadlock is to return to the people and called for early general elections.
However, with the far right leading in opinion polls, holding elections could result in further political gridlock, making it unlikely that President Macron will actually call early elections.
Bloomberg reported that President Macron must quickly form a new government to respond to the union strike against the 2026 budget bill scheduled for September 18.
The market showed little immediate reaction. On this day, the CAC 40 index on the Paris stock exchange closed up 60.06 points (0.78%) at 7,734.84.
However, the combination of massive public debt and political uncertainty is bound to damage the country's credibility. Global credit rating agency Fitch is scheduled to review France's sovereign credit rating on September 12.
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Mickael Nizard, head of multi-asset and overlay at Edmond de Rothschild, stated, "Regardless of the outcome of this political crisis, the likelihood of significant progress in public finance reform is low," adding, "The financial markets have already resigned themselves to the situation, and would be satisfied with a scenario in which the fiscal deficit does not worsen further."
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