French Prime Minister Michel Barnier resigned on Thursday after losing a no-confidence vote in parliament, marking the end of his short tenure and sparking political and financial turmoil in France.

The no-confidence motion, supported by a majority of lawmakers including the hard left and far-right factions, was triggered by Barnier’s controversial 2025 budget plan. The plan proposed austerity measures to stabilize public finances but was widely rejected by parliament.

With Barnier’s resignation, France faces significant uncertainty. The government’s financial plan has been voided, forcing an automatic extension of the current budget unless a new administration secures approval for a revised version by Christmas. Analysts warn of a “new era of political instability,” with credit agencies raising concerns over fiscal consolidation.

President Emmanuel Macron now faces the urgent task of appointing a new premier to navigate the crisis, with speculation centered on potential successors like Defence Minister Sébastien Lecornu and centrist ally François Bayrou.

Meanwhile, opposition leaders have called for early presidential elections, further heightening tensions.

The political crisis coincides with ongoing strikes across public services and comes days before the high-profile reopening of Notre-Dame Cathedral. Macron is expected to address the nation later today to outline the government’s next steps.