French Government on Brink of Collapse Amid No-Confidence Motions

The French government is on the verge of collapse as far-right and left-wing parties join forces to submit no-confidence motions against Prime Minister Michel Barnier. The political turmoil has rocked French assets and increased uncertainty about the annual budget's approval.

The French government is teetering on the edge of collapse, with far-right and left-wing parties uniting in a bid to oust Prime Minister Michel Barnier through no-confidence motions. The move has sent shockwaves through France's economy, casting doubt over the stability of the euro zone's second-largest economy.

Marine Le Pen of the National Rally has voiced the public's dissatisfaction with Barnier's government, accusing him of worsening the country's political chaos since becoming prime minister in September. The impending vote, expected to be held on Wednesday, could result in the first ousting of a French government by a no-confidence vote since 1962.

The turmoil comes at a critical time, with Germany in election mode and the U.S. preparing for Joe Biden to assume the presidency. French markets have reacted negatively, seeing a drop in the CAC 40 index and a widening bond spread against German benchmarks. The outcome of the political showdown remains uncertain, with France's future governance hanging in the balance.

(With inputs from agencies.)