The French government, led by Prime Minister Michel Barnier, faces imminent collapse following no-confidence motions submitted by far-right and left-wing parties, reports Reuters.
This political crisis, the most significant since 1962, threatens to destabilize Europe’s second-largest economy and raises doubts about the approval of the annual budget.
National Rally (RN) leader Marine Le Pen accused Barnier of exacerbating France’s challenges and pledged to support the left-wing coalition’s no-confidence motion. Left-wing France Unbowed leader Mathilde Panot echoed this sentiment, citing Barnier’s governance as a “denial of democracy.”
The political turmoil, sparked by Barnier’s attempt to bypass parliamentary votes on key legislation, has alarmed investors. French assets have plummeted, with the CAC 40 index losing nearly 10% since June’s snap elections. The euro has also come under pressure, reflecting broader instability.
Barnier’s coalition, reliant on RN’s support, fractured over a contentious budget proposal aimed at addressing France’s deficit through €60 billion in tax hikes and spending cuts. Despite last-minute concessions, the RN deemed them insufficient, leaving Barnier’s government vulnerable to collapse in Wednesday’s vote.
Should the no-confidence motion pass, Barnier would be forced to resign, leaving President Emmanuel Macron to appoint a caretaker government. Macron may explore a technocratic cabinet or emergency legislation to manage the budget. However, constitutional ambiguities and opposition resistance could further complicate governance.
This crisis underscores growing fractures within France’s political landscape and its potential impact on European stability.
Source: Reuters
