Paris (TDI): France is in the throes of a political crisis after Prime Minister Michel Barnier’s government lost a confidence vote in the National Assembly on Wednesday.
The vote, which saw a majority of 331 lawmakers back a no-confidence motion, raises serious concerns over France’s political stability and the country’s 2025 budget.
Far-right and left-wing lawmakers united to back the motion, punishing Barnier for using special constitutional powers to push through part of an unpopular budget without parliamentary approval, according to Reuters.
The draft budget, which aimed to secure $63.07 billion in savings to address a growing deficit, was heavily criticized.
Barnier, who had expected the loss, was set to tender his resignation and that of his cabinet to President Emmanuel Macron.
In a speech ahead of the vote, he warned that the country’s deficit would continue to plague future governments, regardless of political shifts.
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This marks the first confidence vote defeat for a French government since Georges Pompidou in 1962, exacerbating the political uncertainty that has already gripped France following Macron’s snap election in June, which led to a deeply divided parliament.
The loss of trust in Barnier’s administration threatens to derail the government’s ability to pass critical legislation, including the 2025 budget.
France now faces the prospect of ending the year without a stable government, leaving the budgetary process in jeopardy.
Despite this, the French constitution allows special measures to avert a government shutdown, though the political cost may be significant.
France’s Political Turmoil Further Weakens EU
The political turmoil further weakens the European Union, already reeling from the collapse of Germany’s coalition government.
Marine Le Pen, leader of the far-right National Rally, called Barnier’s austerity measures dangerous and unfair, adding that they would have led to chaos in the country.
The left-wing France Unbowed (LFI) party, meanwhile, demanded Macron’s resignation, stating that his political agenda had been decisively rejected.
The crisis has already begun to unsettle financial markets, with France’s borrowing costs briefly surpassing those of Greece, traditionally considered a higher-risk borrower.
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The CAC 40, France’s benchmark stock index, has dropped nearly 10% since Macron’s snap election in the summer, making it the worst performer among major EU economies. The euro has also lost nearly 4% of its value.
Macron now faces critical decisions about how to navigate the deadlock.
