French government faces historic no-confidence vote as markets watch closely
Frances political landscape might change tomorrow as lawmakers prepare for a rare no-confidence vote against PM Barnierʼs government. Financial markets already show signs of uncertainty as both far-right and left unite
The french parliament is set-up for a ground-breaking showdown tomorrow — its first major no-confidence vote in over six decades. Michel Barnierʼs government faces strong opposition from an unusual left-right alliance (which might lead to its collapse)
The euro-zones second-biggest economy dont look stable: CAC 40 dropped 10% since summer‚ while the service sector shows clear signs of slow-down. Bruno Retailleau‚ the interior minister admits: “Nothingʼs over til the vote but were heading towards censure“
This government is dangerous for my country
The voting process starts 3pm GMT tomorrow; experts think the result will come around 7pm. Emmanuel Macron who won his second term bout 2 years ago cant be removed by parliament — but his position looks shaky. The budget-deficit which is now more than 6% of GDP needs quick fixing
- Tax increases worth 60bn euros
- Major spending cuts
- Plans to lower deficit to 5% next year
- Emergency legislation might be needed
If the vote succeeds Barnier might stay as caretaker PM til next year. Market experts say this wont cause immediate financial problems but might hurt business confidence long-term. The situation gets more complex as Germany also faces political issues — leaving EU leadership in a tough spot
