PARIS (AP) 鈥� France鈥檚 far-right and left-wing lawmakers joined together Wednesday in a historic no-confidence vote prompted by budget disputes that forces and his Cabinet members to resign, .
The National Assembly approved the motion by 331 votes. A minimum of 288 were needed.
insisted he will serve the rest of his term until 2027. However, he will need to appoint a new prime minister for the second time after led to a deeply divided parliament.
Macron will address the French on Thursday evening, his office said, without providing details. Barnier is expected to formally resign by then.
A conservative appointed in September, becomes the shortest-serving prime minister in France鈥檚 modern Republic.
鈥淚 can tell you that it will remain an honor for me to have served France and the French with dignity,鈥� Barnier said in his final speech before the vote.
鈥淭his no-confidence motion鈥� will make everything more serious and more difficult. That鈥檚 what I鈥檓 sure of,鈥� he said.
Opposition to Barnier's proposed budget
Wednesday's crucial vote rose from fierce opposition to Barnier's proposed budget.
The National Assembly, France鈥檚 lower house of parliament, is deeply fractured, with no single party holding a majority. It comprises three major blocs: Macron鈥檚 centrist allies, the left-wing coalition New Popular Front, and the far-right National Rally. Both opposition blocs, typically at odds, are uniting against Barnier, accusing him of imposing austerity measures and failing to address citizens鈥� needs.
Speaking on TF1 television after the vote, National Rally leader said 鈥渨e had a choice to make, and our choice is to protect the French鈥� from a 鈥渢oxic鈥� budget.
Le Pen also accused Macron of being 鈥渓argely responsible for the current situation,鈥� adding that 鈥渢he pressure on the President of the Republic will get stronger and stronger.鈥�
Speaking at the National Assembly ahead of the vote, hard-left lawmaker Eric Coquerel had called on the government to 鈥渟top pretending the lights will go out,鈥� noting the possibility of an emergency law to levy taxes from Jan. 1, based on this year鈥檚 rules.
鈥淭he special law will prevent a shutdown. It will allow us to get through the end of the year by delaying the budget by a few weeks,鈥� Coquerel said.
Macron to pick a new prime minister
Macron must appoint a new prime minister, but the fragmented parliament remains unchanged. No new legislative elections can be held until at least July, creating a potential stalemate for policymakers.
Macron said discussions about him potentially resigning were 鈥渕ake-believe politics鈥� during a trip to Saudi Arabia earlier this week, according to French media reports.
鈥淚鈥檓 here because I鈥檝e been elected twice by the French people,鈥� Macron said. He was also reported as saying: 鈥淲e must not scare people with such things. We have a strong economy.鈥�
Impact on financial markets
While France is not at risk of a U.S.-style government shutdown, political instability could spook financial markets.
France is to reduce its colossal debt. The country鈥檚 deficit is estimated to reach 6% of gross domestic product this year and analysts say it could rise to 7% next year without drastic adjustments. The political instability could push up French interest rates, digging the debt even further.
Carsten Brzeski, global chief of macro at ING Bank, said uncertainty over France鈥檚 future government and finances is deterring investment and growth. 鈥淭he impact of France not having a government would clearly be negative for the growth of France and hence the Eurozone,鈥� Brzeski said.
France has seen bond market borrowing costs rise, bringing back ugly memories of the Greek debt crisis and default in 2010-2012.
Analysts say France is far from a similar crisis because much of its outstanding debt does not come due for years, and because its bonds remain in demand due to a shortage of German government bonds. Additionally, the European Central Bank could intervene to lower French borrowing costs in case of extreme market turmoil, though the bar for that remains high.
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AP Journalist David McHugh in Frankfurt, Germany, contributed to the story.
Tom Nouvian And Sylvie Corbet, The Associated Press
