The French government resigns for the first time in 60 years

The French parliament expressed a vote of no confidence in the government of Michel Barnier, which led to his resignation from office. Barnier served the shortest term as prime minister in the country's modern history.

The far-right National Unification Party and the left-wing New People's Front bloc joined forces and initiated the vote. This happened after Barnier's attempt to pass a tough budget to significantly reduce the deficit, while he used a constitutional procedure that avoided a parliamentary vote. 331 deputies out of 574 expressed support for the vote of no confidence, with the required minimum of 289 votes.

The fall of the government poses new challenges for President Emmanuel Macron, who will face an intensifying political and economic crisis potentially affecting the entire eurozone. Amid the political chaos, more and more lawmakers are demanding the resignation of Macron, whose term of office expires in 2027. This would be an almost unique event in modern French politics.

The country is likely to meet the new year without a budget, and although Barnier may be asked to remain as interim head to implement urgent measures, such measures will not lead to a reduction in the expected deficit of 6.1% of GDP. This worries the financial markets and becomes the object of criticism from Brussels.