French Prime Minister Francois Bayrou has called a confidence vote next month, sparking concerns among business leaders that the economy is at risk of recession. The vote, which Bayrou announced unexpectedly on Monday, is seen as an attempt to shore up his minority government before the opposition prepares a no-confidence vote.
Business leaders are warning of heavy economic risks, with Alexandre Bompard, CEO of Carrefour, stating that “only consumption is sustaining growth” and that uncertainty could lead to a strong hit on the economy. Patrick Martin, head of the Medef employers’ group, has described Bayrou’s decision as “appalling,” citing the risk of playing with the economy.
The opposition parties have vowed to bring down Bayrou’s government if they win the confidence vote, while opinion polls suggest that most French people want new national elections. The French economy grew 0.3% in the second quarter, but business leaders warn that this growth is unsustainable and could lead to a recession.
Meanwhile, President Emmanuel Macron’s term runs until 2027, and he has repeatedly ruled out resigning or calling new parliamentary elections. However, a majority of French people want parliament dissolved for another vote, separate surveys have shown. The outcome of the confidence vote and potential snap elections will have far-reaching implications for France’s economy and politics.
The situation is further complicated by Macron’s leadership style, which has been criticized for failing to address overspending habits and create lasting change. Protests are expected on September 10, two days after the confidence vote, with various groups calling for action on social media. The uncertainty surrounding France’s economic future raises questions about the stability of its government and the potential consequences for businesses and citizens alike.
Business leaders are calling on politicians to put aside their differences and work towards a solution that will benefit the economy. With the stakes high, the outcome of the confidence vote and subsequent elections will be crucial in determining France’s path forward.
Source: https://www.reuters.com/world/french-political-crisis-carries-steep-economic-risk-business-leaders-say-2025-08-27