French government facing no-confidence vote
The French government is facing an almost-certain imminent collapse after the left and far-right parties said they will back a no-confidence motion against PM Michel Barnier, according to Asharq al-Awsat and agencies on December 2nd.
French stocks and bonds were immediately punished by investors as the latest developments plunged the euro zone’s second-biggest economy deeper into crisis.
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National Rally (RN) leader Marine Le Pen told reporters in parliament “the French have had enough,” saying her party would put forward its own no-confidence motion and will also vote for any similar bill by other parties, and the left will also propose a similar motion.
“Maybe (voters) thought with Michel Barnier things would get better, but it got even worse.”
Barring any last minute change of course, Barnier’s fragile coalition will be the first French government to be forced out by a no-confidence vote in 62 years.
RN lawmakers and the left combined would have enough votes to topple Barnier, and they now have 24 hours to put forward their no-confidence motions.
Their comments followed Barnier saying on December 2nd that he would try to push a social security bill through parliament without a vote after a last-minute concession proved insufficient for the bill to win RN’s support.
French stocks reversed course, while a sell-off in the euro gathered pace and bonds came under pressure, pushing up yields.
The CAC 40 was last down 0.6%, having risen by as much as 0.6% after Barnier’s concessions. The euro fell 1% and was heading for its largest one-day drop since early November. The yield on French government 10-year debt was up 2.7 basis points to 2.923%, having traded at a session low of 2.861% earlier.
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“Faced with this umpteenth denial of democracy, we will censure the government … We are living in political chaos because of Michel Barnier’s government and Emmanuel Macron’s presidency,” said Mathilde Panot of the left-wing France Unbowed.
Barnier called on lawmakers not to back the no-confidence vote “we are at a moment of truth … The French will not forgive us for putting the interests of individuals before the future of the country.”
Barnier now put’s his government’s fate in the hands of the divided parliament which was the result of an inconclusive snap election Macron called on June 9th.
Barnier’s minority government has relied on RN support for its survival since it was formed back in September. The budget bill, which seeks to rein in France’s spiralling public deficit through 60 billion euros in tax hikes and spending cuts, broke that strained link.
Barnier and Le Pen’s respective entourages each blamed the other and said they had done all they could to reach a deal and had been open to dialogue.
A source close to Barnier said the prime minister had made major concessions to Le Pen and that these gains would be lost if the government was brought down. “Is she ready to sacrifice all the wins she got?” the source close to Barnier told Reuters.
Asharq al-Awsat, Le Monde
