Paris: French Prime Minister Michel Barnier is poised to step down on Thursday after far-right and leftist lawmakers united to bring down his government, marking France's second major political upheaval in just six months.
Barnier, a seasoned politician and former EU Brexit negotiator, will go down in history as the shortest-serving prime minister of modern France. The confidence vote marks the first time a French government has been ousted in this manner since Georges Pompidou’s administration fell in 1962.
The collapse of Barnier's government follows his contentious decision to push through a deeply unpopular budget without parliamentary approval. The proposed budget aimed to slash €60 billion ($63.07 billion) to address France's ballooning deficit, drawing fierce criticism. Far-right leader Marine Le Pen’s National Rally lambasted the plan as overly punitive to workers, while the hard left condemned it as socially unjust.
Barnier’s resignation brings weeks of budget-related turmoil to a head, dealing another blow to President Emmanuel Macron’s already weakened political position. Macron's earlier decision to call a snap election ahead of the Paris Olympics this summer has backfired, leaving him politically diminished despite holding a mandate until 2027. While calls for his resignation grow louder, Macron remains constitutionally secure, though his influence has waned significantly.
The fallout leaves France in political limbo, with no stable government in place and the fate of the 2025 budget uncertain. Constitutional provisions may avert a government shutdown, but investor confidence is shaken. French borrowing costs have surged, briefly surpassing those of Greece, a stark sign of waning market trust.
The crisis extends beyond France, amplifying instability in a European Union already grappling with the collapse of Germany’s coalition government. The timing is critical, with U.S. President-elect Donald Trump set to visit Paris on Saturday for the unveiling of the newly restored Notre Dame Cathedral. Macron hopes to appoint a new prime minister before the event to project an image of stability.
However, any incoming prime minister will face the same daunting challenge: navigating a divided parliament to pass crucial legislation, including the 2025 budget. With no possibility of new parliamentary elections until July, France now faces months of political uncertainty, casting a shadow over its governance and economic stability.