French lawmakers vote to remove prime minister in first successful no-confidence vote since 1962

PARIS– France’s far-right and left-wing lawmakers joined forces on Wednesday in a historic no-confidence vote sparked by budget disputes and forcing Prime Minister Michel Barnier and his Cabinet members to resign, a first since 1962.

The National Assembly approved the motion with 331 votes. At least 288 were needed.

President Emmanuel Macron insisted he will serve the remainder of his term until 2027. However, he will have to appoint a new prime minister for the second time after general elections in July resulted in a deeply divided parliament.

Macron will address the French on Thursday evening, his office said, without giving details. Barnier is expected to officially step down by then.

Conservative Barnier, appointed in September, will become the shortest-serving prime minister in the modern French republic.

“I can tell you that it will remain an honor for me to have served France and the French with dignity,” Barnier said in his final speech before the vote.

“This motion of no confidence… will make everything even more serious and difficult. I’m sure of it,” he said.

Wednesday’s crucial vote came amid strong opposition to Barnier’s budget proposal.

The National Assembly, the lower house of the French parliament, is deeply divided, with no single party commanding a majority. It consists of three major blocs: Macron’s centrist allies, the left-wing New Popular Front coalition and the far-right Rassemblement National. Both opposition blocs, usually at odds, are uniting against Barnier, accusing him of imposing austerity measures and failing to respond to citizens’ needs.

Marine Le Pen, the leader of the Rassemblement Nationale, said on TF1 television after the vote: “We had to make a decision and our decision is to protect the French” from a “toxic” budget.

Le Pen also accused Macron of being “largely responsible for the current situation,” adding that “the pressure on the President of the Republic will only increase.”

In a speech to the National Assembly before the vote, the radical left-wing MP Eric Coquerel had called on the government to “stop pretending that the lights are going out” and referred to the possibility of an emergency law based on it to collect taxes from the January 1st annual rules.

“The special law will prevent a shutdown. This will allow us to get through the end of the year by delaying the budget for a few weeks,” said Coquerel.

Macron must appoint a new prime minister, but the fragmented parliament remains unchanged. No new general elections can take place until at least July, creating a possible stalemate for policymakers.

According to French media reports, during a trip to Saudi Arabia earlier this week, Macron said discussions about his possible resignation were “sham politics.”

“I am here because I was elected twice by the French people,” Macron said. He also reportedly said: “We must not scare people with such things. “We have a strong economy.”

While there is no threat of a government shutdown in France like in the USA, political instability could worry the financial markets.

France is under pressure from the European Union to reduce its enormous debt. The country’s deficit is estimated to reach 6% of gross domestic product this year and analysts say it could rise to 7% next year without drastic adjustments. Political instability could drive up French interest rates and push up debt even further.

Carsten Brzeski, global chief of macro at ING Bank, said uncertainty over France’s future government and finances was deterring investment and growth. “The impact of France not having a government would clearly be negative for the growth of France and therefore the eurozone,” Brzeski said.

In France, borrowing costs have risen in the bond market, bringing back ugly memories of the Greek debt crisis and default in 2010 and 2012.

Analysts say France is far from a similar crisis because much of its outstanding debt will not come due for years and because its bonds remain in demand due to a shortage of German government bonds. Furthermore, in the event of extreme market turmoil, the European Central Bank could intervene to reduce France’s borrowing costs, although the hurdle to do so remains high.

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AP journalist David McHugh in Frankfurt, Germany, contributed to the story.