politicsClosed Dec 4, 2024
Macron to Speak Thursday After French Government Falls
- French government loses no-confidence vote
- Le Pen helps bring down premier Barnier
- Macron now needs to try and find a new government
- The euro pares gains to trade little changed
Michel Barnier speaks during a no-confidence debate at the National Assembly in Paris, France, on Dec. 4.
Photographer: Nathan Laine/BloombergThanks for joining us. Here are the key takeaways after France’s government fell in a no-confidence vote over its budget plan.
- The French government of Michel Barnier was toppled after just three months in power when Marine Le Pen’s far-right party teamed up with a left-wing coalition in a no-confidence vote
- The development risks unsettling investors, who have already pushed up France’s borrowing costs beyond those of countries like Spain and Greece
- French bond futures pared gains but were still up after the result of the vote. The euro trimmed gains and was little changed at around $1.0514
- France will now have a caretaker government, and President Macron will need to appoint a new prime minister — who will face the same economic morass and divided parliament as Barnier
- Macron will address the nation on Thursday at 8 p.m. in Paris.
