The French debt crisis is deepened while the Prime Minister of Macron faces a vote without confidence

President Emmanuel Macron is not only the head of state of France. He also seems to want to be the spokesperson all over Europe. He sought to direct the response of Europe to the Russian-Ukraine war, opposed the United States by supporting the Palestinian state and weighed on the desire of former president Donald Trump to buy Greenland. However, criticisms say that he should focus on problems closer to their home.

In Macron’s France, there are real turmoil in the country’s parliament on how to correct the massive debt load. And Prime Minister François Bayrou faces a vote without confidence on Monday, which he will probably lose. Bayrou was appointed by Macron in December of last year, following three other prime ministers who resigned in 2024. In many ways, what will then happen is a scenario of already seen where the president appoints another Prime Minister as he did last December when Michel Barnier left.

At the end of last month, Bayrou stressed that France is deep in debt despite the second economy of the European Union, behind Germany. In addition to being a great economy, France is also an important American trading partner.

Due to the pending budget crisis, Bayrou has drawn up a plan to reduce the budget deficit to 4.6% of GDP next year by achieving 44 billion euros ($ 51 billion) and reducing two holidays. It would be a smaller deficit than over the years from 2020 to 2024.

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French President Emmanuel Macron is making gestures while he stands on the Mont Nunatarsuaq glacier during a visit to Greenland on June 15, 2025. (Ludovic Marin / AFP via Getty Images)

However, the budget cut plan has not fallen well with other parties in the French Parliament, and Bayrou faces a vote of non-confidence of his parliamentary colleagues. The organized unions are exasperated by the Prime Minister’s plans and threaten labor strikes on work. Leo Barincou,, A main economist at Oxford Economics in Paris told Fox News Digital that any union strike will probably not last long, and will not considerably disrupt the economy as yellow vest demonstrations in winter 2018 and 2019.

If Bayrou loses, there are alternatives. “Macron can call an early election or appoint a new Prime Minister, but it will be difficult given the current situation,” said Elias Haddad, main market strategists at Brown Brothers Harriman in London. “Bayrou should lose, and all the other parties have promised to overthrow the government.”

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French Prime Minister François Bayrou speaks during a live television interview broadcast in Paris on August 31, 2025. (Alain Jocard / AFP)

One thing that will almost certainly not happen is a resignation from Macron. “Most likely, Macron appoints another Prime Minister and makes a minimum budget that will not be too scary,” explains Barricou. In other words, there may be a reduction in the budget, but it will not be close to what the current Prime Minister proposed in August.

Although it seems extremely improbable that there is an early election, the national populist rally (RN) said that it was preparing for one and examines a potential list of candidates. The president of the RN, Jordan Bardella, said last week that “we can and must be ready for anything, including a return to the ballot box with a dissolution of the National Assembly”, according to a Reuters report.

Marine Le Pen, on the left, and the national president of Rally Jordan Bardella during a political meeting on June 2, 2024 in Paris. (AP / Thomas Padilla)

Bardella spoke before a meeting aimed at preparing the RN in the parliamentary elections and said that the party had already chosen 85% of its candidates, Reuters reported.

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Prime Minister François Bayrou could face a vote without confidence on Monday, while the Parliament of France fights with the way of fighting the country’s growing debt crisis. (Telmo Pinto / Nurphoto)

A collapse of the French Parliament has apparently worried the European Central Bank, which oversees monetary policy for the monetary area known as the euro zone. Already, yields on French obligations have increased by a tenth of a percentage point, which makes the loan cost higher than in neighboring Germany.

However, although France’s debt problem does not disappear so early, it is unlikely that it no longer weighs on the broader euro zone, says Haddad. He also noted that despite a recent drop in the demand for purchase of French bonds, there is not much to panic. “The underlying demand is always good and unlikely to see a destabilizing situation in the financial markets,” he said. “The links are relatively healthy.”

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Part of the global problem that France is confronted with is that, culturally, the West has changed for the worst, explains Ben Habib, who is now preparing to record Advance UK, a new right-wing political party in Great Britain. “The culture of dependencies has been anchored in Europe, including the United Kingdom,” he said. In other words, too many people are counting on government documents rather than generating income through their own efforts.

In turn, this led to slower savings and a massive increase in public debt charges. This includes the United Kingdom, France, Italy and countries. “It is remarkable for me that we have not already struck the skates,” explains Habib.

Reuters contributed to this report.