Global Political Shake-Up: France Faces Second Government Collapse, Japan Loses Prime Minister
France’s government has collapsed for the second time this year, a historic setback for President Emmanuel Macron. Prime Minister François Bayrou lost a no-confidence vote by a wide margin, forcing him to resign. This is the third prime minister Macron has lost within 12 months, something not seen since 1953.
The crisis began after Bayrou introduced an austerity budget with deep spending cuts and reduced public holidays. Lawmakers strongly rejected the plan. Now, Macron must quickly appoint a fourth prime minister, while facing challenges like rising public debt, political gridlock, and global tensions from Ukraine to Gaza.
Japan’s Leadership Turmoil
In Japan, Prime Minister Shigeru Ishiba has resigned less than a year after taking office. His Liberal Democratic Party lost heavily in elections, losing its majority in both houses of parliament.
Although Ishiba secured a key trade deal with the U.S., internal party pressure mounted. His resignation aims to prevent deeper divisions. A leadership vote is due in October, with Sanae Takaichi and Shinjiro Koizumi emerging as strong contenders for Japan’s top role.
Politics and Economics Interlinked
These twin crises show how politics and economics go hand in hand. Political instability in major economies like France and Japan adds to global uncertainty and weakens market confidence.
Impact:
Global markets might stay volatile as political chaos in France and Japan fuels uncertainty. Investor confidence could weaken, possibly affecting currencies, bonds, and safe-haven assets like gold.
