France on Edge: Snap Election Threat Looms Over Political Crisis

France faces the possibility of a snap parliamentary election as opposition parties move to oust Prime Minister Francois Bayrou. With financial markets reacting negatively, President Emmanuel Macron and his government scramble for support, yet a solution remains elusive. Calls for new leadership intensify amid economic uncertainty.

France is on the brink of another snap parliamentary election, following opposition parties' votes to remove Prime Minister Francois Bayrou. This political turbulence was sparked by Bayrou's unexpected call for a September 8 confidence vote on his debt-reduction strategy.

Leading Socialist lawmaker Boris Vallaud has openly called for a change in leadership and policy, underscoring a deep divide within the French political landscape. While Finance Minister Eric Lombard seeks a last-minute deal, the diverse political spectrum, from far-right to hard-left, remains unconvinced.

Economic repercussions are already visible, with France's CAC40 index and bond yields facing volatility. Meanwhile, President Emmanuel Macron's silence on Bayrou's move adds further uncertainty, as calls grow for him to step down, and speculation about an IMF intervention looms.

(With inputs from agencies.)