France plunges back into crisis after PM Bayrou’s confidence-vote backfires

France’s Prime Minister Francois Bayrou looks on during a press conference in Paris on August 25, 2025. (AFP)
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Updated 26 August 2025
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France plunges back into crisis after PM Bayrou’s confidence-vote backfires

PARIS: France found itself mired in yet another crisis on Tuesday, after Prime Minister Francois Bayrou’s gamble to win backing for his deeply unpopular debt-reduction plan backfired, plunging the country deeper into political and financial instability.

French markets tumbled after Bayrou jolted the political establishment out of its summer slumber on Monday with his unexpected move to seek a September 8 confidence vote on his debt-cutting plan. His proposal was roundly rejected by opposition parties, who said they would relish the opportunity to cut short his minority government’s time in office.
In a symbolic moment that underlined his predicament, Bayrou tripped and nearly went flying as he took to the stage on Tuesday to deliver his first comments since the previous night’s announcement. He said lawmakers must now choose between “chaos” and “responsibility,” and urged the French to pressure their representatives to make a prudent choice ahead of September 8.
“I am not asking anyone to change his mind but one can think it over,” Bayrou later told journalists.
If Bayrou falls, Macron could dissolve parliament and hold fresh legislative elections — a move he has previously rejected — or install a new government. However, neither course of action is likely to solve France’s budget issues or political gridlock.
A source in a key ministry said they expected Macron to opt for a new prime minister.
“The French prime minister’s decision to call an early vote of confidence is most likely to trigger his replacement with yet another prime minister or (less likely) fresh legislative elections,” Capital Economics analysts wrote.
“Either way, France’s budget deficit will remain well above the level needed to stabilize the debt ratio.”
Interior Minister Bruno Retailleau, who leads the conservative Republicans, said it would be “irresponsible” and “against France’s interests” to vote for the government to fall.
Others disagreed.
The far-right National Rally, led by Marine Le Pen, said it wants Macron to call a snap parliamentary election.
“I don’t see what new prime minister wouldn’t be immediately censured,” a source close to Le Pen told Reuters.
The Socialists, whose vote will be crucial, also said they would vote against Bayrou.
“We need a different prime minister and, above all, a different policy,” lead Socialist lawmaker Boris Vallaud wrote on X.
The confidence vote will be held two days before protests called by various groups on social media and backed by leftist parties and some unions, recalling the Yellow Vest unrest that erupted in 2018 over fuel price hikes and the cost of living.
“Unless Francois Bayrou is confirmed in office — which is a hypothesis today that appears unlikely — we will enter a new phase which will be a phase of destabilization,” said pollster Jean-Daniel Levy, predicting negative consequences for the economy and France’s image abroad.
What next?
A source close to Bayrou said his government was open to negotiation on the details of his budget proposals, though they were adamant that a budget squeeze is necessary.
Bayrou said on Tuesday he would ask high-income taxpayers to make a special effort to help curb the deficit.
Bayrou knew a no-confidence vote would eventually be tabled over the budget and decided to get ahead of the opposition, the source said. France’s blue chip CAC40 index was down 1.5 percent on Tuesday, having fallen 1.6 percent late on Monday. Banking giants BNP Paribas and Societe Generale slid more than 6 percent each.
Meanwhile, 10-year French government bond yields briefly rose to 3.53 percent, the highest since March, before steadying at 3.50 percent. When a bond’s yield rises, its price falls.


Tanzania tourism suffers after election killings

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Tanzania tourism suffers after election killings

  • Tanzania’s white beaches and safari lodges are emptier than usual as the country counts the cost to its crucial tourism sector from the mass killing of protesters during recent election unrest
NAIROBI: Tanzania’s white beaches and safari lodges are emptier than usual as the country counts the cost to its crucial tourism sector from the mass killing of protesters during recent election unrest.
The election on October 29 erupted into days of violent protests over allegations that President Samia Suluhu Hassan had rigged the vote.
Police responded by shooting dead more than 1,000 people, according to the opposition, though the government has still not given a final body count.
With fresh protests called for December 9, there are fears of more disruption to come.
“The current situation is very disturbing,” said a hotel manager in Arusha, one of the cities serving as a gateway to the Serengeti safari park.
“In my hotel, 150 bookings and four international events that were planned for December have been canceled so far,” the manager said, adding the hotel was below 30 percent full, compared to two-thirds or higher for that period normally.
The government has insisted there is nothing for tourists to fear.
“Our nation remains peaceful, calm, and open to all,” spokesman Gerson Msigwa told reporters.
Beyond the Internet blackout and canceled flights at the height of the unrest, tourists have indeed been largely unaffected.
“I don’t think it’s having a real impact on us foreigners,” said French tourist Jeremy Fuzel, shopping for handicrafts with his wife and young daughter on the island of Zanzibar.
But business has been noticeably slow, said shopkeepers in the island’s capital, Stone Town.
“Sometimes there are a few slow days, but not two weeks in a row like this,” said Nazir Adam, a jeweller. “It’s the topic everyone is talking about here right now.”
- ‘Fear to speak’ -
That is a problem in the east African country where tourism has become the biggest revenue source, attracting a record 2.14 million international visitors last year and projected to make nearly $4 billion this year.
“Many people may fear to speak about the real situation but almost half of the tourism business is disrupted,” said a tour operator in Arusha, speaking on condition of anonymity for fear of violent reprisals by the police.
Activists say tourists should stay away to punish the government for its violence.
“If you go snorkelling or swimming you might find body parts as we received solid information that bodies were dumped into the Indian Ocean,” said exiled activist Maria Sarungi Tsehai on X.
But others say tourism’s real problems stem from recent counter-productive government policies.
Nora Suleiman, founder of the Nakupenda Tours agency on Zanzibar, blamed a new $44 insurance fee and $90 passenger tax on plane tickets for putting off tourists.
Patrice Caradec, head of French tour operators union SETO, said the biggest problem was a ban on Tanzanian airlines flying in the European Union this year over a lack of safety personnel.
“Tanzania has been a hit with the French for several years,” but it dropped by 15-18 percent this summer, he said, largely because of the airline ban.
- ‘Rebuilding confidence’ -
The most frustrating aspect, Caradec said, was that SETO sent a team to help Tanzania deal with the paperwork to get the ban removed, but it was ignored by the Tanzanian government.
“Between the blacklisted airlines... and the riots, I can confirm that quite a few of our compatriots have decided not to go,” he said.
Mabrian, a consultancy using artificial intelligence to measure global sentiment about countries and industries, made a more direct link to the election unrest.
It found there was a 14 percent drop in its perception-of-security index for Tanzania in November among international travelers year-on-year. Hotel prices were also down 14 percent.
“Even once the political situation stabilizes, rebuilding confidence in travelers’ safety and security will remain a crucial and urgent challenge for Tanzania,” said Mabrian analyst Carlos Cendra.