The French government is on the brink of collapse as far-right National Rally party leader Marine Le Pen has pledged to support a no-confidence vote over the proposed budget bill. Despite Prime Minister Michel Barnier’s last-minute offer not to cut reimbursements for medicines, the party refused to back down. The proposal faces significant opposition, potentially leading to more financial and political instability. If the government falls, President Emmanuel Macron would need to appoint a new administration or hold elections by July, when a new legislative session begins. French assets are under pressure as investors worry about the outcome.
Source: https://www.bloomberg.com/news/newsletters/2024-12-03/french-government-on-brink-of-collapse-over-budget