France is experiencing a pivotal moment, according to Finance Minister Antoine Armand, due to uncertainty surrounding the national budget and the government’s future.
Concerns that Prime Minister Michel Barnier’s administration may collapse over opposition to his budget have impacted the stock and bond markets in France, the second-largest economy in the eurozone, which is grappling with a rising deficit.
“The country is at a turning point,” Mr. Armand stated during an interview on France 2 TV, emphasizing that politicians have a duty “not to plunge the nation into uncertainty.”
Mr. Barnier is scheduled to appear on television news programs this evening, approximately at 8pm (7pm Irish time), and is anticipated to confront no-confidence votes the following day.
The budget proposed by Mr. Barnier aims to address France’s soaring public deficit through €60 billion in tax increases and spending reductions, but it has faced opposition from legislators on both the far-left and far-right.
The combined votes of the left and far-right parties could be sufficient to oust Mr. Barnier, with National Rally (RN) leader Marine Le Pen confirming that her party will support the left-wing coalition’s no-confidence motion as well as her own.
“The French have had enough,” she declared.
Mr. Barnier’s minority government had depended on RN support for its continued existence.
Each side, Mr. Barnier’s team and Ms. Le Pen’s camp, has blamed the other, asserting that they did everything possible to negotiate and remained open to discussion.
If the no-confidence vote proceeds, Mr. Barnier would need to resign, although French President Emmanuel Macron might request that he remain in a caretaker capacity as he seeks a new prime minister, which may not occur until next year.
Regardless, no new snap parliamentary elections can take place before July.
Regarding the budget, if it is not approved by parliament by December 20, the caretaker government may need to propose emergency legislation to extend the spending limits and tax provisions from the current year.
However, this would likely mean that the savings measures Mr. Barnier had envisioned would not be implemented.
