Phew Spaldy, interesting times, as the French sure know how to use the streets to demonstrate their feelings.
The no confidence motion, brought by leftist lawmakers in the French National Assembly, came amid a standoff over a 'draft austerity' budget that had sought to save 60 billion euros ($63.5bn) through spending cuts & tax rises in hopes of reducing the gaping deficit.
Earlier this week, PM Barnier opted to use a constitutional measure known as article 49.3 to pass a social security financial bill. The rare constitutional measure allows a government to pass legislation 'without' parliament?s approval but also gives MPs the chance to challenge that decision by presenting a no confidence motion.
With the crucial support of Marine Le Pen of far-right National Rally (who now have a majority of 331 MPs in the 577 member chamber) they voted to oust the Government.
Le Pen, is preparing to run for French president in 2027 & offers some serious clout throughout France with her modernist far-right monetary ideas & is a keen to see France leave Europe in a Frexit type of scenario.
Le Pen told the French population that her far right party had a choice to make & their choice was to protect the French people from a toxic budget.
It was France first successful no-confidence vote since a defeat for Georges Pompidou?s government in 1962 when Charles de Gaulle was French President.
This political turmoil stems from President Macrons decision to dissolve parliament in June 2024 & hold early elections after his Centrist forces suffered a humiliating defeat in the European Parliament elections.
The upheaval is also likely to further weaken a European Union that is already reeling from the implosion of Germanys coalition government leaving many countries scrambling to present a united front before Trump?s return to the White House in Jan 25.
The French governments fall comes as France is bracing for public-sector strikes that would lead to schools, air & rail traffic being shut down.
Today all Unions called for civil servants, including teachers & air-traffic controllers to also strike over separate cost-cutting measures - so some real People Power all together as a unified solid front.
Macron now has the unenviable task of picking a viable successor capable of navigating the polarised currents of the French fragmented parliament, which will remain unchanged as no new legislative elections can be held until at least July 2025.
Another option would be for Macron to give in to the budget demands of the far-right & name a Prime Minister backed by the far-right party. But that would imply abandoning efforts to cut Frances budget deficit.
But the real risk remains that MPs will topple one pick after another - so National July 2025 elections could see a complete new French government with chaos until then, unless an acceptable PM can be agreed with an acceptable policy regarding the countries deficit.
Currently now in 2024, Frances deficit is projected to be 2.9% of GDP, while the UKs is projected to be 2.3%.
Frances general government gross debt to GDP ratio is 110%, while the UK's is 101%.
Frances budget deficit has been difficult to control & the government is under pressure to reduce its deficit to 3% of GDP by 2027, which would require savings of 110 billion euros ($116.5b) !
The current situation has seen the European Commission already opening an excessive deficit procedure against France - such are the rules & ideally the far-right would prefer France to pull out of Europe & would allow the French public to vote on that scenario too.
Incidently, VW, Europe?s largest carmaker, has announced the first plant closures in its history, resulting in 30,000 jobs lost after a 42% drop in quarterly profits. Steelmaker ThyssenKrupp also announced shedding up to 11,000 jobs by 2030 & thousands more are set to go at Bosch & Ford in Germany.

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