French govt collapses after no-confidence vote; ‘Budget Bill’ triggers Michel Barnier’s downfall as shortest premier
- Emmanuel Macron is looking for a new prime minister on Thursday after the far right joined forces with the left to push through a no-confidence motion against his government over a budget dispute.
France's Govt Collapses: In a dramatic turn of events, France’s Michel Barnier -led government has been 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 EU 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 €60 billion in tax hikes and spending cuts.
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Budget Bill at the Centre of France's Political Crisis
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 — that sank with his government — contained €60 billion ($63 billion) in tax increases and spending cuts that aimed for a reduction in 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.
What is no confidence vote?
A no-confidence vote is a parliamentary motion that expresses the belief that the current government or a specific leader no longer has the support of the majority in the legislature, effectively challenging their authority to continue in office. If the motion is passed, it forces the government or leader to resign or face the possibility of new elections.
Emmanuel Macron Faces an Uncertain Future
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's Growing Influence
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.
“It’s up to his conscience to decide whether he can sacrifice public action and the fate of France to his own pride,” she said during the debate.
Le Pen's party remains influential in the ongoing political crisis, and she is now seen as the frontrunner for the next presidential election, according to polling.
Despite her hardline opposition to Macron’s government, Le Pen has indicated a willingness to collaborate with a new administration, provided they align with her party on fiscal policies. “This budget was toxic for the French,” she said, calling for a more inclusive approach to France’s economic future. “We need a budget that’s acceptable to all.”
The European Impact: France's Political Crisis Shakes the EU
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.
A Nation on Edge: What Lies Ahead for France?
The current political turmoil in France is unlikely to ease anytime soon. While the outgoing government will continue to function in a caretaker role for now, its ability to pass critical legislation, including the 2025 budget, remains in limbo.
Finance Minister Antoine Armand has warned that emergency measures to avoid a government shutdown could result in tax hikes and spending cuts for millions of households. The pressure on Macron to find a viable solution is mounting.
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Business NewsNewsWorldFrench govt collapses after no-confidence vote; ‘Budget Bill’ triggers Michel Barnier’s downfall as shortest premier
First Published:5 Dec 2024, 06:26 AM IST
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