French markets steadied as a no-confidence vote looms that could topple Prime Minister Michel Barnier’s government amid ongoing political turmoil. The risk premium on 10-year bonds tightened to 84 basis points, while the benchmark stock index saw mild gains. A debate on the motion, prompted by an unpopular budget, is set to begin at 4 p.m. Paris time, followed by the vote.
France is facing a potential political and financial crisis as Prime Minister Michel Barnier struggles to manage rising national debt. His efforts to pass the 2025 budget bill are being undermined by opposition lawmakers, leading to investor concerns and asset sell-offs.
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