French Prime Minister Michel Barnier was scheduled to resign on Thursday after far-right and left-wing lawmakers voted to overthrow his government, plunging the eurozone's second-largest economy further into political crisis.
Barnier, a veteran politician who took over as prime minister just three months ago, will become the shortest-serving prime minister in modern French history if President Emmanuel Macron accepts his resignation.
The two spoke for more than an hour, French media reported, adding that Barnier had left the Elysée presidential palace. However, no official confirmation regarding his resignation has been made yet.
The new prime minister will face the same challenges that led to Barnier's ouster, especially as he forces the 2025 budget through a deeply divided parliament at a time when France must rebuild its deteriorating public finances. .
Macron himself will also be in the spotlight as he tries to find a new prime minister.
He aims to quickly appoint a successor, three sources told Reuters, one of whom will attend a meeting attended by U.S. President-elect Donald Trump and other international political leaders. He said he hoped to make the appointment by Saturday's reopening ceremony for Notre Dame Cathedral. .
France's political turmoil further weakens the European Union, already reeling from the collapse of Germany's coalition government, and comes just weeks before President Trump returns to the White House.
The hard-line left and far right punished Mr. Barnier with a no-confidence vote on Wednesday night, accusing him of trying to pass a disorderly prorogated parliament without a vote.
“This is the logical conclusion of the current situation of France and its parliamentarians, the chaos,” Paulo, 75, who lives in Paris, told Reuters.
President Macron was scheduled to give a televised address to the nation Thursday at 8 p.m. According to French media, the prime minister is scheduled to meet with the president of the National Assembly around noon and with the president of the Senate at 2:00 p.m. Japan time.
Macron made the unfortunate decision to call snap elections in June, sparking an ongoing crisis. His term remains until 2027, but there are growing calls for him to resign.
“The main culprit in the current situation is Emmanuel Macron,” Marine Le Pen of the far-right National Rally said on TF1 television late Wednesday.
“Dissolution is [of parliament in June] and censorship [of the government] It is the result of his policies and the great gulf that exists between him and the French today. ”
According to a constitutional clause that was never invoked, the French president cannot oust a president unless the high court meets and two-thirds of the members decide that he has seriously failed in his role.
According to a poll by RTL broadcaster Torna Harris Interactive, around 64% of voters want Macron to resign. A minority of voters supported parliament removing Barnier from office, but many were concerned about the economic and political implications, the poll showed.
According to French constitutional rules, new parliamentary elections cannot be held before July.
“Risk premiums for French assets are likely to remain high as political uncertainty continues until new elections are likely to be held,” SocGen analysts said in a note. “Political uncertainty is likely to dampen both investment and consumer spending.”
Political uncertainty has spooked investors in French bonds and stocks in recent weeks.
French bonds and stocks rallied on Thursday after some traders took profits following the outcome of a widely expected no-confidence vote. However, Thursday's bailout rebound does not alleviate future uncertainty for French markets.
The collapse of the French government leaves the country with no clear path to reducing its budget deficit, and the most likely outcome will be less tense than previously planned, credit rating agency Standard & Poor's said. (S&P) said.
Rival ratings agency Moody's said on Wednesday that the collapse of the French government was negative for the country's credit rating, increasing the risk of a higher debt burden than previously expected.
Far-right Bardera enjoys basking in the sun as French government collapses
