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Home World News Europe

Barnier moves to force contested budget measures through French parliament

December 2, 2024
in Europe
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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

French Prime Minister Michel Barnier has moved to force through draft budget measures without parliamentary approval, a decision that is almost certain to trigger a no-confidence vote in the coming days.

Barnier on Monday activated the 49.3 constitutional clause to push the measures through the National Assembly.

His government lacks a majority in the parliament. Use of the mechanism empowers the opposition, led by Marine Le Pen’s far-right Rassemblement National, to call a motion of no confidence.

The brinkmanship over the budget measures has roiled French markets in recent weeks, briefly pushing Paris’ borrowing costs above Greece’s and denting France’s stock market.

French stocks fell on Monday afternoon, while the euro continued to weaken, down 0.9 per cent at $1.048 as investors focused on France’s political risks.

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

This is a developing story



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