French government faces vote of no confidence over Barnier’s austerity budget

PARIS– PARIS (AP) — French Prime Minister Michel Barnier is preparing for a vote of no confidence this week, a political decision that will almost certainly topple his fragile government and send shockwaves across the euro zone.

Barnier on Monday invoked a rarely used constitutional mechanism to push through the dispute. Budget 2025 without parliamentary approval, arguing that it was essential to maintain “stability” amid deep political divisions.

This decision immediately sparked strong reactions, with Marine Le Pen’s far-right National Rally and the left-wing New Popular Front have both tabled motions of censure in response, paving the way for a vote as early as Wednesday that could see Barnier’s ouster.

The looming showdown takes place against the backdrop of a fractured National Assembly, left in disarray after snap elections in June delivered no clear majority.

President Emmanuel Macron had turned to Barnier in September to break the impasse and remedy France’s growing deficit. Yet Barnier’s proposed austerity budget – cutting spending by €40 billion and raising taxes by €20 billion – has only deepened divisions, stoking tensions in the lower house and triggering this dramatic political confrontation.

The use of the constitutional tool, called article 49.3, allows the government to adopt laws without a parliamentary vote but exposes it to motions of censure. Opposition leaders say Barnier’s concessions, including scrapping electricity tax hikes, do not go far enough to address their concerns. Le Pen accused Barnier of ignoring his party’s demands.

“Everyone must take responsibility,” she said.

The political impasse has destabilized financial markets, with borrowing costs rising sharply due to fears of prolonged instability. Barnier warned of “serious turbulence” if the budget is not passed, but critics dismissed his remarks as alarmist.

If the no-confidence motion succeeds, Macron will remain president but will have to appoint a new prime minister to pass legislation through a fractured assembly. The uncertainty threatens to worsen France’s economic woes and ripple across the eurozone.