FRA40 up 0.6% as PM Bayrou confidence vote starts 📈 🇫🇷

Futures on the French CAC40 index (FRA40) are up 0.6% as the confidence vote on the current centrist Prime Minister François Bayrou starts

The market appears to have fully priced in the potential fall of the current government and further political instability in France, including the possible dissolution of the National Assembly just a year after the last elections. Both right- and left-wing figures, including Marine Le Pen, Eric Ciotti, and Cyrielle Chatelain, have opposed Prime Minister Bayrou. François Bayrou announced he would resign tomorrow if the confidence vote is rejected. President Emmanuel Macron scheduled a government meeting for 8:30 PM CET.

Key points from the French Prime Minister’s speech:

• Bayrou highlighted the risk of excessive debt, calling expenditure control a “matter of life or death” and warning of potential bankruptcy if France continues to finance current spending with credit.

• He emphasized the growing burden of debt servicing on public finances and its negative impact on future generations.

• He rejected the proposed Zucman tax, citing the need to protect private investment and prevent capital flight, while suggesting the possibility of a targeted contribution from the wealthiest individuals.

Source: xStation5