France Faces Political Turmoil: Snap Election Looms Amid Confidence Vote

France stands on the brink of a fresh parliamentary election, following comments from a government minister after opposition parties announced intentions to remove Prime Minister Francois Bayrou and French markets experienced significant declines.

Bayrou recently disrupted the political scene by seeking a confidence vote on his debt-reduction strategy, attracting immediate opposition from major parties, including the Socialists, who called for new leadership and policies. Finance Minister Eric Lombard expressed hope for a resolution, though widespread skepticism persists across the political spectrum.

With President Emmanuel Macron's backing of Bayrou's plan, concerns of further instability arise, notably from the potential need for IMF intervention in the absence of a last-minute compromise. France's financial sector remains watchfully on edge, as bond yields rise amid ongoing uncertainty.

(With inputs from agencies.)