The French economy is once again mired in uncertainty. The Paris stock market has suddenly slumped, investors are demanding higher yields on French government debt, and economists and business leaders are voicing their concerns. After several months of relative calm, François Bayrou's decision to hold a confidence vote on September 8 has rekindled doubts within France's economic circles. The situation became so tense that on Tuesday, August 26, the day after Bayrou's announcement, the finance and budget ministers mobilized in an effort to quell the initial panic.
Contrary to warnings issued the previous day, "We are not, as of today, under threat of any intervention, neither from the International Monetary Fund, nor from the European Central Bank, nor from any international organization," said Economy and Finance Minister Eric Lombard on X. "I want to reassure the French people: We are not about to leap into the unknown," added Public Accounts Minister Amélie de Montchalin on BFM-TV. "I am working very actively to ensure we have a [budget] bill that can be negotiated."
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