PARIS, Dec 5 (Alliance News): France is plunged into political turmoil after Prime Minister Michel Barnier lost a confidence vote in the National Assembly on Wednesday.
The decisive vote, with 331 lawmakers backing the motion, came as a major setback for Barnier and President Emmanuel Macron.
Concerns are mounting over France’s ability to pass the 2025 budget and manage its economic stability.
Far-right and left-wing parties joined forces to topple Barnier’s government. The vote followed Barnier’s controversial use of constitutional powers to push through part of a budget lacking majority support, which aimed to achieve $63.07 billion in savings to address France’s significant budget deficit.
“This (deficit) reality will not disappear by the magic of a motion of censure,” Barnier said before the vote, warning that the deficit would continue to affect future governments.
This is the first time since 1962 that a French government has lost a confidence vote, signaling a period of deep uncertainty.
Macron had called a snap election in June, resulting in a fragmented parliament and setting the stage for this crisis. With Macron’s weakened position, France risks ending 2024 without a stable government or an approved budget.
However, the constitution allows for emergency measures to prevent a government shutdown similar to the US system.
Marine Le Pen, leader of the far-right National Rally, described Barnier’s budget as “dangerous and unfair,” warning of chaos if the government’s plans had been implemented. The hard-left France Unbowed (LFI) party called for Macron’s resignation, with member Mathilde Panot stating, “All of the politics of Emmanuel Macron have been defeated.”
Macron now faces a tough decision: appoint a new prime minister who can garner cross-party support or allow Barnier’s government to remain as a caretaker while seeking solutions.
Macron might consider invoking emergency powers to pass the 2025 budget by decree, but legal and political challenges are significant.
The political crisis has rattled investors, with France’s borrowing costs briefly exceeding those of Greece.
The CAC 40 index has dropped nearly 10% since the election, and the euro has declined by nearly 4%. Economist Tariq Kamal Chaudhry from Hamburg Commercial Bank noted, “The positive signals … seen over the summer are now a thing of the past.”
Despite warnings about potential fiscal catastrophe, Le Pen said her party would back emergency laws to extend the 2024 budget’s provisions as a temporary measure.
