France's minority government on Tuesday faced the prospect of collapse within weeks, after opposition parties said they would not back Prime Minister Francois Bayrou in a Sept. 8 confidence vote tied to his budget cut plans.

The Paris CAC 40 index was 1.4% lower in afternoon deals on Tuesday, after dropping more than 2% in early trade. French medium to long-term borrowing costs ticked higher, with the country's 10-year bond yield up 2 basis points and its 30-year yield up 4 basis points.

France's need to lower its public deficit is a long-running and highly politically contentious subject. Forcing through a 2025 budget without parliamentary approval last year led to the collapse of the previous minority government led by Michel Barnier. Political volat

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