French President Emmanuel Macron will appoint a new prime minister in the coming days following the toppling of the government by lawmakers. The shortest-serving prime minister in modern French history, Michel Barnier, resigned after parliament voted him out over fiscal plans. Macron emphasized the importance of getting a 2025 budget adopted by parliament as the new prime minister’s top priority. Despite the political crisis, Macron reiterated that he will stay in office until his term ends in May 2027.
Macron accused far-right and left-wing parties of creating an “anti-republican front” that led to the government’s collapse. He called for a new government to be formed with representation from various parties willing to work together. Macron also asked Barnier and his government to oversee a caretaker period until a new government is established.
The fall of the government has created uncertainty regarding France’s fiscal deficit and budgetary plans. Credit rating agency Standard and Poor’s predicted that the country may need to reduce belt-tightening measures. French bonds and stocks rallied following the parliament’s no-confidence vote but political uncertainty may continue to impact the country’s assets. The situation highlights the challenge of governing a divided parliament and the need for a clear plan to address France’s financial situation.
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