Key Takeaways From France’s No-Confidence Vote

By Vidya Root

December 04, 2024 at 3:20PM EST

Michel Barnier, France's prime minister, during a no-confidence debate at the National Assembly in Paris, France, on Wednesday, Dec. 4, 2024. A government collapse leaves the outgoing administration acting in a caretaker capacity to manage current affairs and avoid a shutdown. (Nathan Laine/Bloomberg)

(Bloomberg) -- Here are the key takeaways after France’s government fell in a no-confidence vote over its budget plan. For more, click here for our TOPLive blog.

Read the blog online here.

The French government of Michel Barnier was toppled after just three months in power when Marine Le Pen’s far-right party teamed up with a left-wing coalition in a no-confidence vote
The development risks unsettling investors, who have already pushed up France’s borrowing costs beyond those of countries like Spain and Greece
French bond futures pared gains but were still up after the result of the vote. The euro trimmed gains and was little changed at around $1.0514
France will now have a caretaker government, and President Macron will need to appoint a new prime minister — who will face the same economic morass and divided parliament as Barnier
Macron will address the nation on Thursday at 8 p.m. in Paris.