France’s far-right National Rally (RN) has threatened to bring down Prime Minister Michel Barnier’s government unless he agrees to their budget demands by a “last-minute miracle,” according to RN President Jordan Bardella.
The escalating political crisis has rattled markets, leading to a selloff in French stocks and bonds, while the euro weakened. For the first time in history, France’s borrowing costs surpassed those of Greece, reflecting investor unease.
The RN, whose tacit support is critical to the fragile coalition government, had set a Monday deadline for Barnier to meet their demands, including aligning pension increases with inflation. If unmet, the party has vowed to back a no-confidence vote, which could topple the government as early as Wednesday—a scenario not seen in France since 1962.
“The RN will initiate the no-confidence mechanism unless there’s a last-minute miracle and Michel Barnier revises his position before 3 PM (1400 GMT),” Bardella stated in an interview with RTL radio, referring to the scheduled parliamentary vote on the social security financing bill.
If Barnier lacks the necessary support to pass the bill, he could invoke constitutional powers under Article 49.3 to push it through. This move would likely trigger a no-confidence motion from left-wing parties. Alternatively, opposition parties could table a no-confidence vote regardless of whether Barnier employs 49.3 or proceeds with the vote.
Last week, Barnier made concessions by scrapping a proposed electricity tax increase, which the RN touted as a victory. However, the party is demanding further concessions, including raising pensions fully in line with inflation and halting planned cuts to medication reimbursements. They also oppose potential gas tax hikes and want a reduction in France’s financial contributions to the EU budget.
Risk of Financial and Economic Chaos
Government spokesperson Maud Bregeon emphasized the importance of maintaining dialogue, warning of the risks of financial and economic instability. “It is in the interest of the country to ensure France has a budget and avoids falling into chaos,” Bregeon told CNews.
Pierre Moscovici, head of France’s public audit office, echoed these concerns, highlighting the fragile state of France’s finances. “Our financial situation today is dangerous,” he said in an interview with France 2 television, pointing to the uncertainty a budget impasse could create.
The unfolding political drama has left many questioning the country’s ability to navigate this crisis without jeopardizing its economic stability or investor confidence.
