French President Emmanuel Macron is facing a political crisis after Prime Minister Francois Bayrou resigned following a confidence vote defeat. Bayrou, who had been in office for just nine months, was ousted over unpopular budget austerity proposals. Macron now needs to appoint a new prime minister, his fifth in two years, to unite parliament and approve the national budget.
Bayrou's main challenge will be to reduce France's deficit, which is almost double the EU's allowable level, and its debt of 114% of GDP. Defense Minister Sebastien Lecornu has been mentioned as a candidate, but Macron is likely to choose a center-left figure or a technocrat. Meanwhile, polls show Jordan Bardella of the far-right RN party as the people's choice for the job.
Pressure is mounting on Macron as the RN calls for him to step down or call a snap election. The Socialists insist it is their turn to lead. The situation adds to a parliament already divided since last year's snap elections, making day-to-day administration increasingly difficult.
This political instability is also affecting economic confidence. Industry leaders have warned that investment and hiring are slowing. Markets are closely monitoring developments.
