Politics
French parliament votes to oust prime minister, deepening political crisis
- Bayrou loses confidence vote in parliament.
- His defeat deepens political crisis in France.
- France is under pressure to fix its finances.
France’s parliament voted on Monday to bring down the government over its plans to tame the ballooning national debt, deepening a political crisis and handing President Emmanuel Macron the task of finding a fifth prime minister in less than two years.
Francois Bayrou, 74, took office as prime minister only nine months ago. He must now tender his resignation, leaving Macron to face a narrowing set of options, with financial markets signalling worry at France’s political and fiscal crisis.
Bayrou had called the vote unexpectedly to try to win parliamentary support for his strategy to lower a deficit that stands at nearly double the European Union’s 3% ceiling and to start tackling a debt pile equivalent to 114% of GDP.
But opposition parties were in little mood to rally behind his planned savings of 44 billion euros ($51.51 billion) in next year’s budget, with an election for Macron’s successor looming in 2027.
Macron could now nominate a politician from his own centrist minority ruling group or from the ranks of conservatives as the next premier, but that would mean doubling down on a strategy that has failed to yield a stable alliance.
He could tack to the left and nominate a moderate socialist, or choose a technocrat.
No scenario would be likely to hand the next government a parliamentary majority. It was inevitable that the need to form a new government would result in a dilution of the deficit reduction plan, Finance Minister Eric Lombard said before the vote.
Macron may eventually decide the only path out of the crisis lies in calling a snap election, but he has so far resisted calls from the far-right National Rally and hard-left France Unbowed to dissolve parliament a second time.
Fiscal mess
The next government’s most pressing task will be to pass a budget, the same challenge Bayrou faced when he took office.
“You have the power to bring down the government, but you do not have the power to erase reality,” Bayrou told lawmakers before the confidence vote.
“Reality will remain relentless: expenses will continue to rise, and the burden of debt, already unbearable, will grow heavier and more costly,” he said.
France’s “very survival is at stake,” he said.
France’s EU peers will be watching closely.
France holds the highest deficit as a percentage of GDP in the euro zone – the bloc using the EU’s single currency. It pays more to service its debt than Spain and spreads against benchmark German 10-year bonds are at their highest level in four months.
Fitch, often seen as a first mover among rating agencies, reviews its AA- rating with a negative outlook on September 12. Moody’s and S&P Global, which have equivalent ratings, follow in October and November.
A downgrade would hamper France’s ability to raise money at low interest rates from investors, potentially deepening its debt problems.
A lengthy period of political and fiscal uncertainty risks undermining Macron’s influence in Europe at a time when the United States is talking tough on trade and security, and war is raging in Ukraine on Europe’s eastern flank.
Macron and political figures from centrist and conservative parties deem that a snap election would not solve the crisis and that talks with the Socialists should be pursued, two sources familiar with Macron’s thinking said.
The Socialists have offered a counter-budget that would impose a tax of at least 2% on personal wealth greater than 100 million euros and generate savings of 22 billion euros, a proposal that would be tough to marry with the pro-business reform agenda of Macron’s presidency.
Discontent may also start brewing on the streets. A grassroots protest movement called “Bloquons Tout” (“Let’s Block Everything”) is calling for nationwide disruption on Wednesday. Trade unions are plotting walkouts the week after.
“France is done,” said Mohamed, 80, a retired hospital worker who sells produce on the Aligre market in Paris.
- Indian refiners to curtail imports of Russian after US sanctions.
- Top Indian buyer of Russian oil says it will abide by sanctions.
- India’s Russian oil imports fell by 8.4% from April to September.
HYDERABAD: Indian refiners have not placed new orders for Russian oil purchases since sanctions were imposed, as they await clarity from the government and suppliers, sources told Reuters on Tuesday.
Some refiners are tapping the spot markets to meet their crude oil needs, said the sources, who did not want to be named as they are not authorised to speak to the media.
State-run Indian Oil has issued a tender for the purchase of oil, while conglomerate Reliance Industries has boosted purchases from spot markets, according to sources.
The European Union, the UK, and the US have imposed a raft of sanctions against Russia over its war in Ukraine, including fresh US sanctions on Thursday that target Russia’s two top oil producers, Lukoil and Rosneft.
Indian refiners are poised to sharply curtail imports of Russian oil to comply with the new US sanctions, Reuters reported on Thursday, potentially removing a major hurdle to a trade deal with the US.
Last week, Reliance, the top Indian buyer of Russian oil, said it will abide by the sanctions while maintaining its relationship with current oil suppliers. Reuters also reported that the firm plans to stop importing oil from Rosneft.
“We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders with links to the sanctioned entities,” said one of the sources.
“We need to ensure that our purchases are not linked to sanctioned entities as banks will not facilitate payments,” a third source said.
A separate source said his firm is waiting to see if it can get cargoes from non-sanctioned traders or entities.
India bought 1.9 million barrels per day in the first nine months of 2025, or 40% of Russia’s total exports, according to the International Energy Agency.
India’s Russian oil imports between April and September fell 8.4% on year due to narrower discounts and tighter supplies, with refiners seeking more oil from the Middle East and the US, according to trade sources and shipping data.
U.S. President Donald Trump on Tuesday lauded Japan’s first female prime minister, Sanae Takaichi, during talks in Tokyo, welcoming her commitment to accelerate Japan’s military buildup and overseeing the signing of new agreements on trade and critical minerals.
Takaichi a close ally of Trump’s late friend and golfing partner, former Prime Minister Shinzo Abe reportedly told Trump she would nominate him for the Nobel Peace Prize, according to White House spokeswoman Karoline Leavitt.
Sources familiar with the discussions said the new Japanese leader is also expected to announce a $550 billion investment package, including shipbuilding projects and increased imports of U.S. soybeans, natural gas, and pickup trucks.
Analysts believe these commitments could ease potential U.S. pressure on Tokyo to spend even more on defense amid rising tensions with China.
Takaichi has already pledged to boost defense spending to 2% of GDP as part of her government’s long-term strategy.
“It’s a very strong handshake,” Trump remarked as the two leaders posed for photographs at the Akasaka Palace in central Tokyo.
“Everything I’ve heard from Shinzo and others tells me you’ll be one of Japan’s great prime ministers,” Trump said, congratulating Takaichi on becoming the country’s first woman to hold the office.
Takaichi gifted Trump Abe’s putter, a golf bag signed by Japanese major winner Hideki Matsuyama and a gold leaf golf ball, according to photos posted on X by Trump’s assistant Margo Martin.
DEAL ON CRITICAL MINERALS SIGNED
Trump also praised Japan’s efforts to purchase more U.S. defence equipment, while Takaichi said Trump’s role in securing ceasefires between Cambodia and Thailand, and Israel and Palestinian militants, were “unprecedented” achievements.
Takaichi followed other world leaders to recommended Trump for the Peace Prize he has long said he is worthy of.
The leaders then signed an agreement to support the supply of critical minerals and rare earths, as the countries seek to wean reliance off China’s chokehold on the materials crucial for a wide range of products from smartphones to fighter jets.
The deal aims to jointly identify projects of interest in areas such as magnets and batteries over the next six months and work together to develop stockpiles of key minerals among other measures.
Trump was last at the palace, an ornate residence built in a European style, in 2019 for talks with Abe, who was assassinated in 2022.
After lunch with Takaichi there, Trump met with relatives of people abducted by North Korea in the 1960s and 1970s to train its spies and their relatives.
While some were later repatriated, Japan continues to press Pyongyang for a full accounting of all the abductees and the return of any who remain alive, a cause championed by Abe.
“The United States is with them all the way,” Trump said after greeting the families.
The U.S. leader began his visit on Monday with a meeting at the Imperial Palace with Japanese Emperor Naruhito .
VISIT U.S. NAVAL BASE
Takaichi’s gifts to Trump and repeated references to Abe are aimed at evoking memories of a close bond forged over hours the pair spent golfing together during Trump’s first term.
Abe was assassinated in 2022, with the trial of his assailant coincidentally beginning in the western city of Nara on Tuesday.
A similar close relationship with the leader of Japan’s key security and trade partner could help Takaichi bolster her weak political position at home.
Though she has seen a surge in public support since becoming prime minister, her coalition government is two votes shy of a majority in parliament’s lower house.
Trump and Takaichi will later visit the U.S. naval base in Yokosuka near Tokyo, which is home to the aircraft carrier USS George Washington, part of the U.S. military’s powerful presence in the region.
Trump will then meet business leaders in Tokyo, before travelling on Wednesday to South Korea.
In talks there with Chinese President Xi Jinping, Trump said he hopes to seal a trade war truce between the world’s two biggest economies.
- Leaders meet in Tokyo, set to visit US naval base.
- Shipbuilding, soybeans, gas are on the agenda, sources say.
- Trump eyes trade deal with China after Japan visit.
TOKYO: US President Donald Trump lavished praise on Japan’s first female leader Sanae Takaichi in Tokyo on Tuesday, welcoming her pledge to accelerate a military buildup and signing deals on trade and critical minerals.
Takaichi, a close ally of Trump’s friend and golfing partner late Japanese Prime Minister Shinzo Abe, said she would nominate Trump for the Nobel Peace Prize, White House spokeswoman Karoline Leavitt told reporters.
She is also expected to offer a package of US investments under a $550-billion deal agreed this year, including shipbuilding, and increased purchases of US soybeans, natural gas and pickup trucks, sources familiar with the talks said.
Those gestures may temper any Trump demands for Tokyo to spend more on defending islands from an increasingly assertive China, which Takaichi sought to head off by pledging last week to fast-track plans to increase defence spending to 2% of GDP.
“It’s a very strong handshake,” Trump said, as the pair posed for photos at the Akasaka Palace in downtown Tokyo.
“Everything I know from Shinzo and others, you will be one of the great prime ministers. I’d also like to congratulate you on being the first woman prime minister. It’s a big deal,” Trump told Takaichi as the pair sat down for discussions with their delegations.
Takaichi gifted Trump Abe’s putter, a golf bag signed by Japanese major winner Hideki Matsuyama and a gold leaf golf ball, according to photos posted on X by Trump’s assistant Margo Martin.
Deal on critical minerals signed
Trump also praised Japan’s efforts to purchase more US defence equipment, while Takaichi said Trump’s role in securing ceasefires between Cambodia and Thailand, and Israel and Palestinian militants, were “unprecedented” achievements.
Takaichi followed other world leaders to recommended Trump for the Peace Prize he has long said he is worthy of.
The leaders then signed an agreement to support the supply of critical minerals and rare earths, as the countries seek to wean reliance off China’s chokehold on the materials crucial for a wide range of products from smartphones to fighter jets.
The deal aims to jointly identify projects of interest in areas such as magnets and batteries over the next six months and work together to develop stockpiles of key minerals among other measures.
Trump was last at the palace, an ornate residence built in a European style, in 2019 for talks with Abe, who was assassinated in 2022.
The US leader received a royal welcome shortly after his arrival on Monday, meeting with Japanese Emperor Naruhito at the Imperial Palace.
Visit US naval base
Takaichi’s gifts to Trump and repeated references to Abe are aimed at evoking memories of a close bond forged over hours the pair spent golfing together during Trump’s first term. Abe was assassinated in 2022, with the trial of his assailant coincidentally beginning in the western city of Nara on Tuesday.
A similar close relationship with the leader of Japan’s key security and trade partner could help Takaichi bolster her weak political position at home.
Though she has seen a surge in public support since becoming prime minister, her coalition government is two votes shy of a majority in parliament’s lower house.
Trump and Takaichi will later visit the US naval base in Yokosuka near Tokyo, which is home to the aircraft carrier USS George Washington, part of the US military’s powerful presence in the region.
Trump will then meet business leaders in Tokyo, before travelling on Wednesday to South Korea. In talks there with Chinese President Xi Jinping, Trump said he hopes to seal a trade war truce between the world’s two biggest economies.
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