In a dramatic turn of events, France’s Michel Barnier-led government was brought down by a no-confidence vote in the National Assembly, marking the shortest tenure for a prime minister since the country’s Fifth Republic was established in 1958. Michel Barnier, a seasoned conservative and former Brexit negotiator, was ousted after just three months in office.
The vote, which saw 331 French lawmakers backing the motion, was primarily sparked by fierce opposition to his budget proposals for 2025, especially the planned $63 billion in tax hikes and spending cuts.
Barnier’s three-month government had been under growing pressure due to the introduction of a budget bill that proposed stringent fiscal measures to reduce France’s deficit.
The budget bill presented by Barnier—which sank with his government—contained $63 billion in tax increases and spending cuts. It aimed to reduce the deficit to 5% of economic output in 2025, from an estimated 6.1% this year.
Far-right leader Marine Le Pen and left-wing coalitions united in their rejection of the plan, with both accusing Barnier of using special constitutional powers to push through parts of the budget without parliamentary approval.
Barnier’s efforts to balance France’s finances came at a difficult time, with voters reluctant to accept austerity measures in light of the country’s ongoing economic challenges.
Following Barnier’s resignation, President Emmanuel Macron is now faced with the urgent task of finding a new prime minister who can navigate the deeply fractured parliament and ensure that the 2025 budget is passed.
The current political impasse presents a major challenge for Emmanuel Macron, as the lower house of parliament remains divided between Macron's weakened centrist coalition, Le Pen’s far-right National Rally, and a fragmented left-wing alliance.
Le Pen, whose National Rally is now a major player in French politics, has seized the opportunity to push her own agenda. She has called for Macron’s resignation, accusing him of stubbornness in the face of the country's financial troubles.
Le Pen's party remains influential in the ongoing political crisis, and she is now seen as the frontrunner for the next presidential election.
The collapse of Barnier’s government has broader implications for the European Union, with France being the EU’s second-largest economy. The crisis adds to the growing political instability across Europe, already exacerbated by the challenges faced by Germany’s coalition government.
Barnier himself had warned of the potential financial repercussions of his ousting. “If I’m ousted, there will be a storm in the markets,” he said. The uncertainty surrounding France’s political stability has already begun to impact investor confidence, with French bond futures slipping after the vote.
(By arrangement with livemint.com)
