French Prime Minister Francois Bayrou survived two no-confidence motions on Wednesday, ensuring the adoption of the 2025 budget after months of political uncertainty. The vote follows Bayrou’s use of a constitutional provision to bypass parliament, a move that split the left-wing opposition.
Bayrou’s decision to force the budget through without a vote triggered opposition backlash but ultimately secured approval as the Socialist Party broke ranks with its left-wing allies and refused to support the no-confidence motion.
France has faced political instability since President Emmanuel Macron’s snap elections last summer, which left parliament divided into three opposing blocs. Bayrou’s predecessor, Michel Barnier, was ousted after attempting the same constitutional maneuver.
The budget includes €52 billion ($54.2 billion) in savings, preserving spending for healthcare and education, and marks a smaller adjustment than Barnier’s rejected proposal, which sought €60 billion in tax increases and cuts.
While Bayrou has stabilized the government for now, his administration still faces a fractured parliament and the risk of future no-confidence votes, including one over migration reform. Meanwhile, France remains out of compliance with EU fiscal rules, with a deficit projected at 5.4% next year.
The budget approval reassured markets, with French bond yields narrowing against German bonds. However, Moody’s recently downgraded France’s credit rating, citing concerns over long-term fiscal stability.
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France’s 2026 state budget has been adopted by parliament after Prime Minister Sebastien Lecornu survived two no-confidence motions, ending months of political stalemate that had paralysed fiscal decision-making.
France will borrow a record €310 billion from financial markets next year to finance its growing public deficit and refinance maturing debt, according to figures released by Agence France Trésor (AFT) on Tuesday.
European Commission President Ursula von der Leyen has survived two attempts to remove her from office after the European Parliament rejected no-confidence motions from hard-right and left-wing groups on Thursday.
France's fourth prime minister in three years, François Bayrou, faces almost certain defeat in a confidence vote on Monday, tipping the euro zone's second-biggest economy further into political uncertainty.
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