French Premier Bayrou's budget cuts face opposition, risking government collapse and snap elections.

French Premier François Bayrou faces a confidence vote in September over his budget cuts, which three main opposition parties oppose. This has led to a sell-off in French stocks and bonds, with the CAC40 index and major banks like BNP Paribas and Societe Generale suffering losses. If Bayrou loses the vote, it could lead to the government's collapse and possibly a snap election, raising concerns about French political stability.