France’s National Assembly voted on Wednesday to oust Prime Minister Michel Barnier and his Cabinet through a no-confidence motion, the first of its kind since 1962. Triggered by intense disputes over the proposed budget, the motion secured 331 votes, surpassing the required 288 and forcing Barnier to step down just three months after his appointment.
Appointed in September as a conservative voice in President Emmanuel Macron’s government, Barnier will go down as the shortest-serving prime minister in France’s Fifth Republic. In his final address, he expressed pride in serving the nation, though he warned the vote would complicate governance in an already fractured parliament.
“I can tell you that it will remain an honor for me to have served France and the French with dignity,” Barnier said, acknowledging the challenges ahead.
The no-confidence vote stemmed from fierce opposition to Barnier’s proposed budget, criticized for imposing austerity measures while neglecting citizens’ pressing needs. France’s National Assembly remains deeply divided among three main blocs: Macron’s centrist allies, the left-wing New Popular Front coalition, and the far-right National Rally.
Marine Le Pen, leader of the National Rally, called the budget “toxic” and blamed Macron for the escalating crisis. “The pressure on the President of the Republic will get stronger and stronger,” Le Pen stated during a televised interview.
Eric Coquerel, a hard-left lawmaker, echoed concerns about economic mismanagement, advocating for an emergency law to prevent disruptions by extending current taxation rules until a new budget is finalized.
What happens now?
President Macron, who must now appoint a new prime minister, insists he will serve his full term until 2027 despite rising criticism. His administration has faced growing challenges in managing a fragmented parliament, which has stymied legislative progress since July’s elections.
Speaking earlier this week during a visit to Saudi Arabia, Macron dismissed speculation about his resignation as “make-believe politics”, emphasizing his commitment to economic stability. “We must not scare people with such things. We have a strong economy,” he said.
The no-confidence vote has raised concerns about France’s fiscal stability, with analysts warning of potential economic repercussions. The country’s deficit is expected to reach 6% of GDP this year, with forecasts suggesting a rise to 7% without significant reforms.
Carsten Brzeski, global chief of macroeconomics at ING Bank, cautioned that the political uncertainty could deter investment and hinder growth. “The impact of France not having a government would clearly be negative for the growth of France and hence the Eurozone,” he noted.
Although France is far from a Greek-style debt crisis, rising borrowing costs and EU pressure to reduce its debt burden highlight the challenges ahead. Analysts believe the European Central Bank could intervene in extreme cases, though such measures remain a last resort.
Macron is expected to address the nation on Thursday evening, outlining his plans to navigate the political turmoil. With no new legislative elections possible until July, the coming months could see further gridlock in policymaking, deepening France’s political and economic uncertainties.