France faces political turmoil as far-right demands snap elections

France is confronting rising political and economic uncertainty as the minority government of Prime Minister François Bayrou faces an imminent collapse. 

The far-right National Rally, the country’s largest opposition party, has urged President Emmanuel Macron to either call new elections or resign, Caliber.Az reports, citing foreign media.

“There is only one way out of this political deadlock: returning to the ballot box,” Jordan Bardella, president of Marine Le Pen’s National Rally, told broadcaster TF1 on Tuesday.

“Emmanuel Macron must recognise this institutional paralysis that he himself has caused and either dissolve the National Assembly or, obviously, submit his resignation.”

Bardella’s remarks are notable given that Marine Le Pen, the party’s longtime leader, is barred from running in upcoming legislative or presidential elections due to her March embezzlement conviction. Le Pen maintains her innocence, and her political future depends on an appeals court decision expected next summer.

Macron, meanwhile, is unlikely to step down but is reportedly preparing for the possibility of a government collapse. Two sources close to the French president told POLITICO that Macron has advised allies to “be ready” for 8 September, when Bayrou is expected to face a confidence vote after proposing a nearly €44 billion cut to the 2026 budget in an effort to reduce the deficit to 4.6% of GDP.

The plan has been opposed by the National Rally, the far-left France Unbowed, and the centre-left Socialists, effectively jeopardising Bayrou’s government. Financial institutions and rating agencies have repeatedly warned that unchecked public spending could threaten France’s economic stability.

A presidential adviser told POLITICO that while Macron is not “in favour” of a snap election, he has maintained that he would not forgo his constitutional right to dissolve parliament.

Public opinion appears to back a fresh vote. A survey by pollster Elabe published on Tuesday showed 69% of respondents support dissolving the National Assembly, and 67% favour Macron resigning.

However, analysts warn that new elections could reproduce similar results, potentially leaving France with another hung parliament. Such an outcome would heighten political instability, which investors cite as a key risk.

French financial markets displayed cautious optimism on August 27. The government’s benchmark 10-year borrowing rate held steady at 3.49%, just below Italy’s, while the CAC 40 stock index rose 0.4% but remained down nearly 3% over the past week amid concerns over political risk.

By Aghakazim Guliyev