French Prime Minister Michel Barnier became the shortest-serving premiere of the Fifth Republic, after his government lost a no-confidence vote in parliament, becoming the first administration to be toppled in such a way since Georges Pompidou in 1962.
An alliance of left-wing parties, supported by far-right lawmakers joined forces to push the motion against the minority coalition, with a majority 331 votes in favour of the motion.
Barnier is likely to hand his resignation on Thursday (December 5).
Michel Barnier‘s appointment
Michel Barnier is no stranger to politics. The politician was appointed by French president Emmanuel Macron, took charge as the Prime Minister on September 5, 2024.
His appointment came after a political deadlock which rooted from legislative elections in July, where all sides came out without a majority of seats in the National Assembly. President Macron had ordered a snap election in the face of mounting dissatisfaction with his rule. The election proved to be a hung parliament, and was succeeded by a caretaker government, who oversaw key events, including the Paris Olympics, before Barnier’s charge.
Barnier has previously served in multiple French government cabinets as well as the chief negotiator for European Union, on Britain’s exit from Brexit during the period of 2016-2021.
Why was the no-confidence motion tabled?
Bernier, a veteran politician drew fierce criticism from the opposition, as he attempted to push through an unpopular budget, without a parliamentary vote. The draft budget aimed to secure 60 billion euros in savings as an effort to reduce the nation’s widening deficit.
Earlier in October at the National Assembly in Paris, he stated he would reduce the budget deficit – which is set to reach 6.1% of GDP this year – to 5% by the end of 2025 but would have to push back the target date for reaching the euro zone’s common 3% deficit goal to 2029 from 2027.
The bill intended to bring down the deficit to 5% by next year, through imposition of €60 billion in tax hikes and spending cuts. It also proposed delaying pension increases among other measures.
Barnier invoked Article 49.3 on Tuesday, a French constitutional measure to adopt the “Social Security” budget for 2025, which allows the assembly to pass a bill without parliamentary vote.
The historic no-confidence motion was tabled by the alliance of left-wing parties “Nouveau Front Populaire” (New Popular Front – NFP) and the far-right Rassemblement National Party.
Marine Le Pen, a far-right National Rally leader stated it as a necessity for the protection of French people rather than a victory.
What lies next for the economy?
Reports state that France faces a brink of falling into an economic crisis. Earlier this week, France’s borrowing costs exceeded Germany, being cited as risky.
Denis Ferrand, head of a Paris-based economic research institute Rexecode, states that the French economy has weakened over the past few years, despite inflation and unemployment rates standing at a relatively lower rate.
Anne-Sophie Alsif, chief economist at Paris-based consultancy BDO, says the factors on their own hold less significance of pushing a financial crisis, however the unstable political situation does.
Le Pen said her party is willing to support any eventual emergency law to ensure there is stopgap financing.
President Macron is expected to announce a successive Prime Minister soon. However, France faces profound political uncertainty.
According to reports, Barnier is expected to head a caretaker government until a new government is formed.
The French government is expected to either propose emergency legislation to renounce the tax and spend provisions in the 2024 budget into next year, or invoke special powers to pass the draft 2025 budget.
