The earthquake in the French government shakes the Paris Stock Exchange. Banks are losing above all

The Paris Stock Exchange recorded declines on Tuesday, the day after Prime Minister Francois Bayrou announced a proposal in the parliament about the vote of confidence for his government on September 8. The main index of the stock exchange, CAC 40, fell by 1.91 percent The shares of the main French banks have dropped.

Already on Monday evening at the closing of the stock exchange – after Bayrou's speech and announcements of opposition parties that they would not give him a vote of confidence – CAC 40 fell by 1.59 percent.

On Tuesday, as at 9.30 mainly the shares of banks: BNP Paribas, Societe Generale (both – by over 6 percent) and Credit Agricole (by approx. 4.5 percent), as well as the shares of the AXA insurance company (by over 6 %).

The AFP agency, quoting experts, indicates that markets are afraid of further lowering the rating agencies regarding French public debt.

French Economy Minister Eric Lombard said on Tuesday that the priority is now to maintain markets trust. He argued that public finances are under control.

Bayrou announced on Monday that he would ask the parliament on September 8 at an extraordinary meeting of a vote of trust. The prime minister talked about it in a speech about the need for budget cuts. In mid -July, he proposed savings activities that would allow the budget for next year to find savings reaching EUR 44 billion. The opposition expressed an objection and demanded a change in this project. (PAP)

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