France is experiencing acute political and economic instability. On July 9, 2025, Prime Minister François Bayou's government faced multiple no-confidence votes due to its failure to find €40 billion in budget cuts for 2026. The financial crisis triggered panic in markets, with investors divesting from French assets in favor of more stable markets like Italy, Spain, and Germany. Finance Minister Amélie de Montchalin admitted the possibility of seeking IMF aid if the crisis deepens. Domestic political tension was compounded by pressure from Brussels and criticism from the European Central Bank. Experts warn that continued inaction may lead to a downgrade in the country's ratings and loss of trust among allies. Source: https://www.reuters.com/business/finance/political-chaos-leaves-france-sidelined-investors-warm-europe-2025-07-09/?utm_source=chatgpt.com