Macron's government crisis: Does France control the next financial crash?

Macron's government crisis: Does France control the next financial crash?

In a historical political upheaval, the French Parliament voted out Prime Minister Michel Barnier in office after only three months. This vote of no confidence, which was rarely successful in the history of France, strongly questions the economic stability of the country. Barnier, whose government was under great pressure, had failed to enforce a controversial savings budget for 2025, which was to be used to control new debt. France is already fighting with a debt rate of around 110 percent, which is the third highest value in Europe, and could now face a deficit procedure of the EU Commission, as krone.at reports.

With the resignation Barnier, it is again shown how fragile the political landscape in France is. Barnier was trapped between the political extremes, the right -wing extremist breed embleme nationally and the left new folk front, and could not find a stable majority. After the failure of the savings budget, Barnier outlined the pressing financial problems, since France has to pay 60 billion euros in interest annually to pay for its debts. Despite his warnings, the political debate was more about resignation than solutions to the acute financial problems, which the opposition exploited with a successful vote of no confidence, such as daily show.de emphasized.

The consequences for France and the EU

President Emmanuel Macron is now required to appoint a new prime minister. Despite the political uncertainties, Macron emphasizes that he wants to lead the government until the end of his term in 2027. However, experts warn of the risks that would mean early resignation for political stability, especially with regard to the growing power of Marine Le Pen. The restlessness remains on the financial markets; Barnier had predicted turbulence, but the reactions were initially steamed, which indicates a certain expectation that France will present a sustainable solution despite internal turbulence. Financial analysts believe that the European Central Bank can intervene with its instruments in the event of an intensified crisis to stabilize the markets, which makes a repetition of the euro crisis from 2010-2012 unlikely.