Evening Briefing: Europe

France is “drowning in a tide of debt,” Prime Minister Francois Bayrou said as he seeks to rally support for austerity measures and swing a confidence vote later today. Bayrou cast the issue partly as one of unfairness to French youth, citing the “overwhelming burden” that’s being put on their shoulders. He also argued that France is vulnerable to an exodus of talent.

Results from the vote, that will likely lead to the government’s collapse, are expected around 8 p.m. in Paris today. Far-right leader Marine Le Pen described the vote as a “moment of truth” that marks a “collapse of a system,” and reiterated her party’s request for President Emmanuel Macron to call new elections.

Cyrielle Chatelain from the Greens, explaining her party’s intention to vote against Bayrou, called for more taxes on the rich and business. Bayrou called the confidence motion last month in a bid to pressure lawmakers to back him in narrowing the deficit.

Bond markets will pay close attention to the outcome. France’s fiscal deficit is the widest in the euro area, and debt is rising by €5,000 ($5,840) a second. Readings for both business and consumer confidence are below their long-term average amid the political upheaval. Follow our live blog here. — Philip Lagerkranser

What You Need to Know Today

The European Union is said to be exploring new sanctions on Russian banks and energy companies as officials ratchet up pressure on Vladimir Putin to end the war in Ukraine. The raft of measures could also target Russia’s payment and credit card systems and crypto exchanges, and it may include more restrictions on the country’s oil trade, sources say. It would be the 19th package since Russia’s full-scale invasion in 2022.

The European Central Bank has ended a standoff with banks over how much money they must set aside for risky loans. Changes to the challenger model used to quantify risks are said to have further cut an estimate of a $7 billion shortfall in provisions, which itself was reduced by nearly half last year after a backlash. This challenger model was controversial, because it projected loan losses far in excess of the banks’ own numbers.

BYD isn’t letting up in its push to expand in Europe, with the carmaker announcing plans today to have more than 1,000 stores in 32 countries across the continent by the end of the year. The Chinese automaker now offers 13 models in Europe, including the Seal 6 DM-i Touring, a plug-in hybrid station wagon with a combined gasoline and battery range of 1,350 kilometers (839 miles).

A BYD Co. Seal 6 DM-i Touring SUV at the IAA Mobility 2025 expo in Munich, Germany. Photographer: Krisztian Bocsi/Bloomberg

Six people were killed in Jerusalem and 13 wounded when gunmen from the Palestinian West Bank opened fire at a bus stop, Israeli police and medics say. Nobody claimed immediate responsibility to the shooting, which left seven of the wounded severely hurt. Hamas, which is fighting Israel in the Gaza Strip, praised the attack and called for more. The gunmen were shot dead.

Marine Le Pen will face a retrial in January as she’s trying to overturn a conviction and election ban that’s preventing her from running in the next presidential race. Hearings in a case where she was found guilty of misusing EU funds should take place between Jan. 13 and Feb. 12, judges at the Paris court of appeals said today. A decision is expected by next summer.

Marine Le Pen arrives at the National Assembly in Paris on Sept. 8. Photographer: Nathan Laine/Bloomberg

Turkish riot police used tear gas on protesters outside the main opposition party’s headquarters in Istanbul today. The protesters were attempting to block a court-imposed trustee from taking control of the Republican People’s Party’s branch in Turkey’s largest city, and had defied a three-day ban on demonstrations. The party’s most high-profile politician, Istanbul Mayor Ekrem Imamoglu, was jailed on corruption accusations in March.

Klarna, the Swedish fintech, is said to be telling investors that it plans to price its initial public offering in the US at the top end of or above the marketing range. Investor demand for the shares isn’t sensitive to price, we’re told. The company, founded about 20 years ago, will price the IPO tomorrow.