France on the Brink: Political Turmoil Threatens Government Collapse

The French government faces imminent collapse as far-right and left-wing parties unite to pass a no-confidence vote against Prime Minister Michel Barnier. Investors reacted with dismay, impacting stocks and bonds, while the euro weakened. This potential governmental downfall occurs amid Germany's election preparations and Donald Trump's return to U.S. politics.

The French government is teetering on the edge of collapse as far-right and left-wing parties unite to pass a no-confidence vote against Prime Minister Michel Barnier. This situation plunged France, the euro zone's second-largest economy, into turmoil as investors reacted by selling off stocks and bonds.

National Rally leader Marine Le Pen announced her party's intention to support a no-confidence motion proposed by different parties, capitalizing on increasing frustration among voters about Barnier's handling of the administration. If successful, Barnier's coalition would be the first French government to fall due to a no-confidence vote since 1962.

The market remained uncertain, with French stocks and the euro experiencing significant drops, while bond yields rose. The political instability, aligned with Germany's election period and the impending return of Donald Trump to the U.S. presidency, threatens to destabilize the European political landscape further.

(With inputs from agencies.)