France found itself mired in yet another crisis yesterday, after Prime Minister Francois Bayrou’s gamble to win backing for his deeply unpopular debt-reduction plan backfired, plunging the country deeper into political and financial instability.
French markets tumbled after Bayrou jolted the political establishment out of its summer slumber with his unexpected move to seek a September 8 confidence vote on his debt-cutting plan.
His proposal was roundly rejected by opposition parties, who said they would relish the opportunity to cut short his minority government’s time in office.
In a symbolic moment that underlined his predicament, Bayrou tripped and nearly went flying as he took to the stage yesterday to deliver his first comments since the previous night’s announcement.
He said legislators must now choose between ‘chaos’ and ‘responsibility’, and urged the French to pressure their representatives to make a prudent choice ahead of September 8.
“I am not asking anyone to change his mind but one can think it over,” Bayrou later told journalists.
If Bayrou falls, Macron could dissolve parliament and hold fresh legislative elections – a move he has previously rejected – or install a new government.
However, neither course of action is likely to solve France’s budget issues or political gridlock.
A source in a key ministry said they expected Macron to opt for a new prime minister.
“The French prime minister’s decision to call an early vote of confidence is most likely to trigger his replacement with yet another prime minister or (less likely) fresh legislative elections,” Capital Economics analysts wrote.
“Either way, France’s budget deficit will remain well above the level needed to stabilise the debt ratio.”
Interior Minister Bruno Retailleau, who leads the conservative Republicans, said it would be ‘irresponsible’ and ‘against France’s interests’ to vote for the government to fall.
Others disagreed.
The far-right National Rally, led by Marine Le Pen, said it wants Macron to call a snap parliamentary election.
“I don’t see what new prime minister wouldn’t be immediately censured,” a source close to Le Pen told Reuters.
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