Michel Barnier faces a vote of no confidence

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French Prime Minister Michel Barnier’s government will face a vote of no confidence in the coming days after he was forced to pass draft budget measures without parliamentary approval.

Barnier on Monday invoked article 49.3 of the French constitution to pass the first part of his proposed 60 billion euro financial package to raise taxes and cut spending. He lacks a majority in Congress.

Marine Le Pen’s far-right opposition party Rassemblement National said on X shortly after the move that it would “vote to censure the government”.

Far-left party France Unbowed also confirmed it will introduce a motion of no confidence in the coming hours.

Barnier defended his decision and urged French lawmakers not to push the country into crisis.

“We have come to the moment of truth. . . Now members of Congress must decide if our country will receive a responsible, indispensable budget or if we will enter uncharted territory,” he said.

“I have reached the end of the dialogue that is possible with all political groups, remaining open and listening.”

the on the brink of budget measures has shaken French markets in recent weeks, briefly pushing Paris’s borrowing costs above Greece’s and weakening the French stock market.

French stocks fell slightly on Monday as investors reacted negatively to rising political risks, while the euro continued to weaken, falling 1% to $1.047.

The country’s sovereign bonds weakened after Barnier’s decision to trigger the constitutional provision, which saw 10-year bond yields rise 0.02 percentage points to 2.92%, while Eurozone bonds another price increase.

The spread on Germany’s benchmark 10-year bond, a key risk gauge, hit 0.88%, close to a 12-year high last week.

If Barnier’s government is voted down this week, it would be the second time French lawmakers have taken such a step since the Fifth Republic was established in 1958. This would also making Barnier the prime minister with the shortest time in office during the same period.

On Monday, Barnier deadlocked in final negotiations on a financial package with Le Pen’s party. But so far, they have been fruitless, even though Banier has accepted two-thirds of RN’s demands.