After the far right and left joined forces to push a vote of no confidence over budget disputes, French President Emmanuel Macron is looking for a new leader to replace Prime Minister Michel Barnier.

At this time, the French political situation has fallen into serious turmoil, and the new prime minister will face the same financial difficulties as his predecessor.

Budget dispute leads to vote of no confidence motion passed

The budget bill proposed by Barnier, which includes a € 60 billion (approximately $63 billion) tax increase and spending reduction plan aimed at reducing the deficit to GDP ratio from 6.1% this year to 5% by 2025, was rejected by parliament.

Far right leader Marina Le Pen teamed up with the Left Alliance to overthrow the Barnier government, further exacerbating France's political crisis.

France faces long-term turmoil

Barnier became the shortest serving Prime Minister of the Fifth Republic of France since 1958, and the first Prime Minister in over 60 years to step down due to a vote of no confidence. He was just appointed in September and had previously served as the EU's chief Brexit negotiator.

President Macron will make a statement on Thursday evening (December 5th). He needs to quickly appoint a new prime minister who can push for the passage of the 2025 budget in a highly divided parliament.

However, fiscal pressure, social divisions, and budget disputes will all become severe challenges for the new prime minister.

Market and investor reactions

After the announcement of the voting results, the market reacted cautiously.

The exchange rate of the euro against the US dollar remained almost unchanged at about US $1.0514, while French bond futures gave back some of their earlier gains.

This uncertainty may further shake investor confidence.

Le Pen intensifies pressure on Macron

Marina Le Pen expressed her willingness to cooperate with the new government, but the prerequisite is to jointly develop a budget plan with her political party.

She criticized the existing budget as "harmful" to the French people and called for a "budget acceptable to all". At the same time, she increased pressure on Macron to resign in order to break the current deadlock.

Macron responded that he would not resign before the end of his term in 2027 and refused to accept Le Pen's request.

However, opinion polls show that Le Pen is leading in the next presidential election, adding greater political pressure to the Macron government.

History and Future

This crisis has led the French political situation towards a more uncertain future.

In the history of the Fifth Republic, only Georges Pompidou was dismissed in 1962 due to a vote of no confidence, but was eventually reappointed with the support of President Charles de Gaulle.

Nowadays, Macron is facing similar political challenges, but his situation is even more complex in the context of social division and increasing economic pressure.