France is grappling with a political crisis as far-left and far-right parties have submitted no-confidence motions against Prime Minister Michel Barnier, threatening the stability of his already fragile government. The looming parliamentary vote, set for Wednesday, could bring about the first government collapse through a no-confidence vote since 1962. The fallout is already impacting financial markets, with investors pulling out of French assets, leading to widening bond spreads and a weakened euro.

Marine Le Pen, leader of the far-right National Rally (RN), announced her party’s motion on Monday, accusing Barnier of exacerbating the country’s problems since his appointment in September. Le Pen stated, “The French have had enough,” and confirmed RN’s support for a similar motion from the left-wing coalition. The potential coalition between RN and left-wing lawmakers could secure the motions’ success, barring unforeseen developments.

The crisis intensified after Barnier bypassed a parliamentary vote on a contentious social security bill, a move that sparked widespread backlash. Mathilde Panot, a member of the left-wing France Unbowed, criticized Barnier’s decision as “another denial of democracy,” holding him and President Emmanuel Macron accountable for the escalating chaos. Macron’s snap election in June left France with a divided parliament, further complicating governance. Since then, the CAC 40 index has fallen nearly 10%, marking France as one of Europe’s weakest economic performers.

Barnier’s minority government initially relied on RN support, but this alliance fractured over disagreements regarding a budget proposal featuring €60 billion in tax hikes and spending cuts to address France’s mounting public deficit. Should the no-confidence vote succeed, Barnier would likely resign, and Macron might request he remain in a caretaker role while searching for a new prime minister. This process could extend well into 2024, leaving France politically and economically uncertain.

Some analysts suggest a technocratic government as a potential solution, one without a political agenda, designed to survive no-confidence challenges. However, Macron’s options are limited, as new parliamentary elections cannot occur before July. Additionally, there is growing concern about the country’s budget, which must be passed before December 20. Failure to do so could compel a caretaker government to use constitutional powers or propose emergency legislation, both of which carry significant legal and political risks.

Barnier has called on lawmakers to prioritize national interests, warning against the repercussions of governmental collapse. He urged unity, stating, “The French will not forgive us for putting individual ambitions above the country’s future.” Despite his appeal, the political impasse underscores deep divisions and raises questions about France’s immediate and long-term stability.