French Government on Brink of Collapse Over Budget

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The French government could collapse as early as this week after the far-right National Rally promised to support a no-confidence vote over a proposed budget bill. Prime Minister Michel Barnier’s last-minute offer not to cut reimbursements for medicines wasn’t enough to get the Marine Le Pen-led party’s backing, and the country looks set for more financial and political instability. If the government falls, President Emmanuel Macron, currently in Saudi Arabia, would have to appoint a new administration — either the current one in a caretaker capacity or a new cabinet whose funding would need to be approved month by month. A new legislative election cannot be held until July. French assets came under renewed selling pressure.