French government faces collapse after No-Confidence Vote. The French government is on the brink of collapse after both patriotic and left-wing parties confirmed they will support a no-confidence motion against Prime Minister Michel Barnier.
This latest political crisis has led to immediate financial repercussions, with investors punishing French stocks and bonds, further deepening the turmoil in the eurozone’s second-largest economy.
Marine Le Pen, leader of the National Rally (RN), declared in parliament that her party would table its own no-confidence motion while also backing any similar motions from other parties. “The French have had enough,” she said, adding that although voters may have hoped for improvement under Barnier, things had only worsened. The left-wing opposition has also pledged to put forward its own motion.
Unless there is a last-minute change, Barnier’s fragile coalition is set to become the first French government to be ousted by a no-confidence vote since 1962. A government collapse would leave a significant void in Europe, especially with Germany also in the midst of an election period.
The combined votes of the RN and left-wing lawmakers are sufficient to remove Barnier from power. They now have 24 hours to formalise their motions. This development follows Barnier’s announcement on Monday that he would attempt to push through a social security bill without a vote, after his last-minute concessions failed to win RN support for the legislation.
In response, French stocks reversed their earlier gains, with the sell-off in the eurozone accelerating. The CAC 40 index fell by 0.6%, having briefly risen by the same amount following Barnier’s concessions. The euro dropped by 1%, heading for its biggest one-day decline since early November.
Mathilde Panot, from the left-wing France Unbowed party, condemned the government, saying, “Faced with this constant denial of democracy, we will censure the government. We are living in political chaos because of Michel Barnier’s government and Emmanuel Macron’s presidency.”
Barnier urged lawmakers not to support the no-confidence motion, calling it a “moment of truth” for the country. “The French will not forgive us for putting individual interests above the future of the country,” he warned.
Since its formation in September, Barnier’s minority government has depended on RN support for survival. However, a controversial budget bill, which aims to tackle France’s growing public deficit with €60 billion in tax hikes and spending cuts, has shattered that fragile alliance. Both Barnier’s team and Le Pen’s camp have blamed each other for the breakdown in negotiations, insisting they had done all they could to reach an agreement and had remained open to dialogue.
