President Emmanuel Macron is seeking a way out of France's political crisis after Michel Barnier became the first prime minister to be ousted by parliament in over six decades. The upheaval leaves lawmakers just 70 days to debate a new 2025 budget plan after the previous one was scrapped with the vote of no-confidence.
Barnier officially resigned on Thursday morning, plunging France into its second major political crisis in six months.
It came the day after a confidence vote nullified the government’s €60 billion austerity plan that Barnier forced through parliament using his executive powers in a bid to shrink France's huge deficit.
Brought by the hard left and supported by the far right in the National Assembly, the motion saw a majority of 331 MPs in the 577-member chamber opting to topple the government – a first since 1962.
Financial uncertainty
The political upheaval has left France without a long-term budget, triggering an automatic renewal of the current financial plan into 2025.
Lawmakers now have a tight 70-day window to propose, debate and adopt a fresh plan.
If a new budget is not approved in time, the country risks deeper financial instability. The resigning government can submit a special bill to continue collecting taxes, but it must be presented by 19 December.
France’s borrowing costs have already spiked, briefly surpassing those of Greece earlier this week – traditionally seen as a much riskier investment – as investors grow nervous over the political gridlock.
France has 'one of the worst deficits' in its history, minister says
New PM expected
A caretaker government will remain in place to take care of day-to-day business until a new prime minister is appointed.
A source close to Macron said the president has "no choice" but to name a new prime minister within 24 hours. He has scheduled a national address for 8pm local time on Thursday, the Elysée Palace said.
With over two years of his presidential term left, some – though not all – opponents are calling on Macron to resign.
Any new prime minister would face the same challenges as Barnier in getting bills, including the 2025 budget, adopted by a divided parliament. There can be no new parliamentary election before July.
Given the turbulence, the new nominee now risks serving an even shorter term than Barnier, whose tenure was the shortest of any administration since the Fifth Republic began in 1958.
Defence Minister Sébastien Lecornu, centrist ally François Bayrou and former Socialist premier Bernard Cazeneuve are considered potential candidates for the role.
Marine Le Pen, leader of the far-right National Rally, said her party would cooperate with the next government to create “a budget acceptable for everyone.”
Wave of strikes brewing as French budget cuts anger unions
Winter of strikes
The financial uncertainty comes as France braces for widespread strikes. Teachers, air traffic controllers and other civil servants are walking off the job on Thursday over separate cost-cutting measures.
Farmers, who were promised administrative reforms in the scrapped 2025 budget, are planning demonstrations next week to voice their anger.
The strikes are expected to disrupt schools, transport and public services, compounding the sense of crisis gripping the country.
