On Wednesday, French opposition lawmakers brought down Prime Minister Michel Barnier’s government, plunging France into a deeper political crisis. A no-confidence motion, backed by both far-right and left-wing lawmakers, garnered 331 votes. Barnier is expected to resign and tender his government’s resignation to President Emmanuel Macron. This marks the first loss of a confidence vote since 1962.
Macron’s call for a snap election in June led to a polarized parliament, weakening his administration. As a result, France faces the prospect of an unstable government and no 2025 budget. While the constitution allows measures to prevent a shutdown, the political turmoil is unsettling investors, who are already concerned about France’s sovereign debt.
The no-confidence vote stemmed from Barnier’s use of special constitutional powers to push through an unpopular budget aimed at saving 60 billion euros to reduce the deficit. Far-right leader Marine Le Pen described the budget as unfair, calling the government collapse the only way to protect the French public.
The political uncertainty now raises alarms about France’s future and its role in a weakening European Union. With borrowing costs briefly exceeding those of Greece, the country faces an uncertain economic outlook. Macron now faces a tough decision: install a new prime minister or ask Barnier to continue in a caretaker role.
However, any new prime minister will struggle to pass bills through a divided parliament, as no new election is allowed before July. A caretaker government could either roll over provisions from the 2024 budget or attempt to pass the 2025 budget by decree, though this would come with significant political risks.
Opponents of Macron, including Le Pen, argue that his resignation is the only solution to end the crisis. Macron’s rivals continue to blame each other for the turmoil, adding to the uncertainty as France moves closer to a critical turning point.
