French government faces no-confidence motion over Barnier's austerity budget
- In Reports
- 02:43 PM, Dec 03, 2024
- Myind Staff
French Prime Minister Michel Barnier is preparing for a no-confidence vote this week, which is likely to end his weak government and cause major disruptions in the eurozone.
On Monday, Barnier used a seldom-used constitutional power to pass the controversial 2025 budget without getting approval from parliament. He argued that this move was necessary to ensure stability in the face of strong political divisions. The decision quickly sparked strong opposition, with both the far-right National Rally, led by Marine Le Pen, and the left-wing New Popular Front filing no-confidence motions. This could lead to a vote as soon as Wednesday, which might result in Barnier being removed from his position.
This clash comes at a time when the National Assembly is divided and unstable, following June’s snap elections that resulted in no clear majority. In September, President Emmanuel Macron turned to Barnier to help resolve the deadlock and tackle France's growing deficit. However, Barnier's suggested austerity budget, which cuts 40 billion euros ($42 billion) in spending and increases taxes by 20 billion euros, has only caused more divisions. This has intensified tensions in the lower house and led to a major political clash.
Article 49.3 of the constitution gives the government the power to enact laws without a parliamentary vote, but it also exposes the government to motions of no-confidence. Barnier's concessions, which include removing a proposed increase in the electricity tax, are deemed insufficient by opposition leaders to adequately address their concerns. Le Pen said Barnier was ignoring what her party wanted.
Everyone must shoulder their responsibilities, she said. Financial markets are uneasy due to the political impasse, and borrowing prices have increased significantly as a result of concerns about long-term instability. Critics brushed off Barnier's warnings of severe instability if the budget wasn't approved as scare tactics. If the no-confidence motion passes, Macron will stay as president, but he will have to choose a new prime minister to help pass laws in the divided assembly. This uncertainty could worsen France's economic issues and have an impact on the entire eurozone.
Comments