French Government on Brink of Collapse After Prime Minister Forces Through Budget
French Prime Minister Michel Barnier has forced through the first part of his budget without a vote in the National Assembly, employing Article 49.3 of the French constitution to bypass parliament. The controversial plan includes deep spending cuts and tax hikes, but lawmakers are now seeking to censure him through a vote of no confidence.
Under French law, Barnier can be ousted within 48 hours if the vote is successful. Radical left party New Popular Front and hard-right National Rally, led by Marine Le Pen, have already confirmed they will support the censure motion. The votes are expected to take place on Wednesday.
Barnier, a member of the centre-right Republican party, was appointed by President Emmanuel Macron to rescue the French economy, which has struggled since the COVID-19 pandemic. The deficit to GDP ratio has soared, exceeding EU rules. To address this, Barnier’s budget included significant spending cuts and tax increases.
If Barnier loses the vote of no confidence, his budget plans may be scrapped, potentially leading to economic chaos. The French government may be unable to pass a new budget, which could plunge the Eurozone into a 2015 Greece-style crisis. The European Commission will also face a difficult decision on how to sanction France’s economy.
The situation has already led to a rise in government borrowing costs, with France now paying 2.9 percent on its 10-year debt, compared to Germany’s 2.05 percent. The French stock market has also experienced a sharp sell-off.
