Barnier ousted as France’s prime minister after losing vote of no confidence

France’s far-right and left-wing lawmakers joined together on Wednesday in a historic no-confidence vote prompted by budget disputes that forces Prime Minister Michel Barnier and his Cabinet members to resign, a first since 1962.

The National Assembly approved the motion by 331 votes. A minimum of 288 were needed.

President Emmanuel Macron insisted he will serve the rest of his term until 2027.

However, he will need to appoint a new prime minister for the second time after July’s legislative elections led to a deeply divided parliament.

Mr Barnier, a conservative appointed in September, will become the shortest-serving prime minister in France’s modern Republic.

“As this mission may soon come to an end, I can tell you that it will remain an honour for me to have served France and the French with dignity,” Mr Barnier said in his final speech before the vote.

“This no-confidence motion … will make everything more serious and more difficult. That’s what I’m sure of,” he said.

Wednesday’s crucial vote rose from fierce opposition to Mr Barnier’s proposed budget.

The National Assembly, France’s lower house of parliament, is deeply fractured, with no single party holding a majority. It comprises three major blocs: Macron’s centrist allies; the left-wing coalition New Popular Front; and the far-right National Rally.

Both opposition blocs, typically at odds, are uniting against Mr Barnier, accusing him of imposing austerity measures and failing to address citizens’ needs.

Speaking at the National Assembly ahead of the vote, National Rally leader Marine Le Pen, whose party’s goodwill was crucial to keeping Mr Barnier in power, said “we’ve reached the moment of truth, a parliamentary moment unseen since 1962”.

“Stop pretending the lights will go out,” hard-left lawmaker Eric Coquerel said, noting the possibility of an emergency law to levy taxes from January 1, based on this year’s rules.

“The special law will prevent a shutdown. It will allow us to get through the end of the year by delaying the budget by a few weeks.”

Mr Macron must appoint a new prime minister, but the fragmented parliament remains unchanged. No new legislative elections can be held until at least July, creating a potential stalemate for policymakers.

Mr Macron said discussions about him potentially resigning were “make-believe politics” during a trip to Saudi Arabia earlier this week, according to French media reports.

“I’m here because I’ve been elected twice by the French people,” Mr Macron said. He was also reported as saying: “We must not scare people with such things. We have a strong economy.”

While France is not at risk of a US-style government shutdown, political instability could spook financial markets.

France is under pressure from the European Union to reduce its colossal debt.

The country’s deficit is estimated to reach 6% of gross domestic product this year and analysts say it could rise to 7% next year without drastic adjustments.

The political instability could push up French interest rates, digging the debt even further.