Topline
France’s government was fractured Wednesday when a coalition of far-right and far-left lawmakers led a no-confidence vote against Prime Minister of France Michel Barnier, leaving the wobbly ruling coalition of President Emmanuel Macron in disarray.
French Prime Minister Michel Barnier during commemorations marking the 106th anniversary of the … [+]
Key Facts
Barnier, a conservative who was known for being a main Brexit negotiator, was appointed as prime minister in September by French President Emmanuel Macron after a two-month search.
More than 330 lawmakers out of 577 voted against Barnier Wednesday, though just 288 were required to pass the measure of no-confidence, The New York Times reported.
The decision to vote on a measure of no-confidence came after Barnier proposed 60 billion euros in spending cuts (about $63.1 billion) to lessen France’s deficit, The Wall Street Journal reported.
This story is breaking and will be updated.
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Key Background
Barnier was named prime minister in September, months after Prime Minister Gabriel Attal resigned in July, though Attal stayed on in a caretaker capacity until Macron picked a new prime minister. France has been in political turmoil since June, when Macron called snap elections in an effort to “clarify” the country’s political makeup after his party lost to the far-right in European Parliament elections—but the results left the country with a deeply divided Parliament, with no party having a majority. The leftist New Popular Front party won the most seats (182), but was far short of the 289 seats needed for a majority. The far-right National Rally party and its allies won 143 seats, and Macron’s more centrist party, the Ensemble alliance, won 163 seats. Although the New Popular Front won the most seats, Macron did not appoint a member of the party as prime minister, opting for Barnier instead out of concern that the NPF’s candidate was “not in a position to govern with stability,” Politico reported. When Macron named Barnier, who had been a cabinet minister four times and a European commissioner twice, the Elysée Palace said in a statement Macron “made sure that the prime minister and its government will have the most stable conditions possible.”
What Does This Mean For The French Economy?
France is reportedly the second-biggest economic power in the European Union, and Barnier’s resignation will likely throw the country into greater disarray while trying to manage its budget. Reuters reported that with Barnier out of power, France risks ending the year without a budget for 2025 or a prime minister in power, both of which could weaken its standing worldwide. The Wall Street Journal reported French stocks have fallen in recent weeks as the country’s debt has risen to its highest level since 2012. France’s deficit is currently projected at 6.1% of its GDP—which is more than double the EU’s limit—leading investors to deem France a “risky investment,” Politico reported.
What To Watch For
How Macron responds. He could allow Barnier to stay on in a caretaker capacity, the Journal reported, and try to pass measures to extend this year’s budget and avoid a government shutdown in 2025. He could also appoint a new prime minister to address the budget.
