French lawmakers passed a historic no-confidence vote on Wednesday, forcing Prime Minister Michel Barnier and his Cabinet to resign—a first since 1962. The move, driven by budget disputes, saw far-right and left-wing lawmakers unite, plunging the European Union’s second-largest economy deeper into crisis.
Michel Barnier, a conservative appointed in September, now holds the distinction of being France’s shortest-serving prime minister in the Fifth Republic, established in 1958, after his minority government lasted only three months. His swift ousting follows snap parliamentary elections earlier this summer, which produced a hung Parliament where no party secured a majority, leaving the far-right in a pivotal position to influence the government’s stability.
President Emmanuel Macron is scheduled to address the nation on Thursday evening, with Michel Barnier expected to submit his formal resignation beforehand.
How did Michel Barnier lose the confidence vote?
Far-right and left-wing lawmakers passed a no-confidence motion against PM Michel Barnier, with 331 votes in favour, surpassing the required 288. According to French media, he is expected to formally resign along with his Cabinet on Thursday morning.
The National Assembly, France’s lower house, remains deeply divided, with no party holding a majority. It consists of three main blocs: President Emmanuel Macron’s centrist allies, the left-wing New Popular Front, and the far-right National Rally. Despite their usual differences, the opposition blocs united to oppose Barnier, criticising his austerity policies and lack of focus on citizens’ needs.
While President Macron has reaffirmed his intention to serve until the end of his term in 2027, he now faces the challenge of appointing a new prime minister for the second time since July’s legislative elections. However, the fractured parliament and the inability to hold new elections until at least July could lead to prolonged political deadlock.
Why did the no-confidence vote arise?
The hard-left and far-right factions ousted Prime Minister Michel Barnier in response to his use of special constitutional powers to bypass parliament and push through parts of an unpopular budget. The draft aimed to save €60 billion ($63.07 billion) to address a widening deficit but lacked majority legislative support.
France faces mounting pressure from the European Union to curb its soaring debt. According to the Associated Press, the deficit is projected at 6% of GDP this year and potentially rising to 7% next year without significant measures. Analysts warn that ongoing political instability could drive up French interest rates, worsening the debt situation further.
Although borrowing costs for French bonds have risen, evoking memories of Greece’s 2010-2012 debt crisis, analysts believe France is not at risk of a similar scenario. Much of its debt has not been due for several years, and French bonds remain attractive due to the limited availability of German government bonds. Additionally, the European Central Bank could step in to stabilise borrowing costs during severe market disruptions, though such intervention would only occur under extreme conditions.
(With inputs from agencies)
