Paris : French Government Collapse: In a first since 1962, the French government led by President Emanuel Macron collapsed on Wednesday after the opposition lawmakers brought the government down by backing a no-confidence motion with a majority of 331 votes in support of the motion.
The no-confidence motion was brought against Prime Minister Michel Barnier and his government, pushing the country’s economy into a deeper political crisis. This will put the country’s ability to legislate and address its mounting budget deficit at risk.
The setback came in the backdrop of President Macron calling a snap election in June that delivered a polarised parliament. Barnier was expected to tender his resignation and that of his government to President Emmanuel Macron shortly.
With its president diminished France now risks ending the year without a stable government or a 2025 budget, although the constitution allows special measures that would avert a US-style government shutdown.
The political rift will increase the problems further weakening a European Union already reeling from the implosion of Germany’s coalition government, weeks before US President-elect Donald Trump returns to the White House.
Barnier came under fire from the left and far right for using his special constitutional powers to ram part of an unpopular budget that sought to decrease the deficit by 60 billion euros.
Far-right chief Marine Le Pen had said collapsing the government was “the only way the constitution gives us to protect the French from a dangerous, unfair and punitive budget”.
France now faces a period of deep political uncertainty that is already unnerving investors in French sovereign bonds and stocks. Earlier this week, France’s borrowing costs briefly exceeded those of Greece, generally considered far more risky.
According to the sources cited by Reuters, Macron aimed to install a new prime minister swiftly, with one saying he wanted to name a premier before a ceremony to reopen the Notre-Dame Cathedral on Saturday. US President-elect Donals Trump is due to attend.
Parliamentary elections in France can’t take place before July. Any new prime minister would face the same challenges as Barnier in getting bills, including the 2025 budget, adopted by a divided parliament.
As of now, Macron could alternatively ask Barnier and his ministers to stay on in a caretaker capacity while he takes time to identify a prime minister able to attract sufficient cross-party support to pass legislation. A caretaker government could either propose emergency legislation to roll over the tax-and-spend provisions in the 2024 budget into next year, or invoke special powers to pass the draft 2025 budget by decree – though jurists say this is a legal grey area and the political cost would be huge.
