Macron Pledges to Stay in Office as France Faces Unprecedented Political and Economic Challenges
The French president is set to appoint a new prime minister in the near future and has committed to remaining in the Elysee Palace until the end of his term.
France is grappling with a political crisis as economic difficulties and escalating public dissatisfaction place President Emmanuel Macron under significant strain, despite his pledge to retain his position.
On Dec. 5, French lawmakers from across the political spectrum voted to dismiss Prime Minister Michel Barnier from a powerful position, indicating deepening divisions within the French parliament. This marks the first time a French government has been ousted by a no-confidence vote since 1962.
This development is just one part of a series of setbacks for Macron, who has faced challenges in passing essential policies since calling a snap election on June 9, resulting in a hung parliament and political uncertainty.
‘Rare Political Uncertainty’
The French media has strongly reacted to the unfolding situation.
Libération referred to it as a period of “rare political uncertainty.” Le Monde stated, “Emmanuel Macron is primarily responsible for this unprecedented and risky political situation.”
Le Figaro featured the headline, “Historic removal, political crisis” on its cover.
Macron addressed the nation in a televised speech at 8 p.m. on Thursday.
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“The budget will be the top priority,” Macron remarked.
Macron has pledged to remain in the Elysee Palace for the entire duration of his term, which extends until mid-2027, and cannot be removed by parliament. Nonetheless, opposition from both the left and right wings are already demanding his resignation.
“The mandate you have given me is for five years and I will fulfill it until the very end,” he declared.
French Prime Minister Michel Barnier delivers a speech during the debate prior to the no-confidence votes on his administration at the National Assembly in Paris on Dec. 4, 2024. Alain Jocard/AFP via Getty Images
Macron finds himself pulled in different directions, as he navigates between a left-wing coalition that includes his party, La France Insoumise, the Socialist Party, the Ecologists, and the French Communist Party, and the right-wing National Rally.
Polarization
According to Frank Furedi, executive director of MCC Brussels, the crisis is worsened by the fragmented nature of France’s political landscape.
“It’s crucial to remember that the way the crisis is portrayed suggests there are three groups in Parliament, all of similar strength,” he pointed out.
“That’s not entirely accurate though, as during the elections, the left banded together against the Rassemblement National [National Rally] to minimize their electoral gains,” he added.
He believed that the “polarization of France” could escalate.
EU
The political instability in France also coincides with a critical period for the European Union.
With France and Germany—two of the EU’s largest economies—facing substantial political turmoil and being “living on borrowed money,” the EU’s internal vulnerabilities are exposed, Furedi noted.
“It reveals the intrinsic weaknesses of this project, as the EU and its objectives seem stronger than they actually are,” he remarked.
He suggested that the present crises in both France and Germany underscore the necessity to reassess the power dynamics within the EU.
“All previous assumptions about the EU and its economic affairs must now confront reality,” he emphasized.
Deeply Divided
The uncertainty surrounding the deeply divided French Parliament has made it increasingly challenging for the government to pass the 2025 budget.
The country’s debt is projected to surpass 3 trillion euros ($3.17 trillion) by 2025, with public debt hovering around 110 percent of GDP.
If left unaddressed, France’s political situation risks sending negative signals to financial markets, as indicated by the industry before Macron’s speech.
The collapse of France’s government leaves the country with no clear path to reduce its fiscal deficit, with the most probable outcome being less austerity measures than initially planned, according to credit rating agency Standard & Poor’s (S&P).
Suggestions have been made that Macron might implement extraordinary budgetary measures, bypassing parliament to avoid a government shutdown similar to what is seen in the U.S.
Mathieu Savary, chief investment strategist at BCA Research, told Reuters that he believed “paralysis will continue to characterize French politics over the next two years, meaning that the debt issue is unlikely to be effectively addressed”
He warned that the “potential threat to France’s credit rating will deter investors.”
Nevertheless, since Macron has announced plans to appoint a new prime minister soon and has prioritized obtaining parliamentary approval for the 2025 budget, French debt risk premiums have slightly stabilized.
Guy Birchall and Reuters contributed to this report.
