World
French government felled in no-confidence vote, deepening political crisis
French lawmakers passed a no-confidence vote against the government on Wednesday, throwing the European Union’s second-biggest economic power deeper into a crisis that threatens its capacity to legislate and tame a massive budget deficit.
Far-right and left-wing lawmakers joined forces to back a no-confidence motion against Prime Minister Michel Barnier, with a majority 331 votes in support of the motion, Reuters reported.
Barnier now has to tender his resignation and that of his government to President Emmanuel Macron, making his minority government’s three-month tenure the shortest lived in France’s Fifth Republic beginning in 1958. He is expected to do so on Thursday morning, French media reported.
The hard left and far right punished Barnier for using special constitutional powers to adopt part of an unpopular budget without a final vote in parliament, where it lacked majority support. The draft budget had sought 60 billion euros ($63.07 billion) in savings in a drive to shrink a gaping deficit.
“This (deficit) reality will not disappear by the magic of a motion of censure,” Barnier told lawmakers ahead of the vote, adding the budget deficit would come back to haunt whichever government comes next.
No French government had lost a confidence vote since Georges Pompidou’s in 1962. Macron ushered in the crisis by calling a snap election in June that delivered a polarised parliament.
With its president diminished, France now risks ending the year without a stable government or a 2025 budget, although the constitution allows special measures that would avert a U.S.-style government shutdown.
France’s political turmoil will further weaken a European Union already reeling from the implosion of Germany’s coalition government, and weeks before U.S. President-elect Donald Trump returns to the White House.
The country’s outgoing defence minister Sebastien Lecornu warned the turmoil could impact French support for Ukraine.
The hard left France Unbowed (LFI) party demanded Macron’s resignation.
Barnier’s demise was cheered by far-right chief Marine Le Pen, who has sought for years to portray her National Rally party as a government in waiting.
“I’m not pushing for Macron’s resignation,” she said. “The pressure on the president will get greater and greater. Only he will make that decision.”
NO EASY EXIT FROM FRENCH POLITICAL CRISIS
France now faces a period of deep political uncertainty that is already unnerving investors in French sovereign bonds and stocks. Earlier this week, France’s borrowing costs briefly exceeded those of Greece, generally considered far more risky.
Macron must now make a choice. The Elysee Palace said the president would address the nation on Thursday evening.
Three sources told Reuters that Macron aimed to install a new prime minister swiftly, with one saying he wanted to name a premier before a ceremony to reopen the Notre-Dame Cathedral on Saturday, which Trump is due to attend.
Any new prime minister would face the same challenges as Barnier in getting bills, including the 2025 budget, adopted by a divided parliament. There can be no new parliamentary election before July.
Macron could alternatively ask Barnier and his ministers to stay on in a caretaker capacity while he takes time to identify a prime minister able to attract sufficient cross-party support to pass legislation.
A caretaker government could either propose emergency legislation to roll the tax-and-spend provisions in the 2024 budget into next year, or invoke special powers to pass the draft 2025 budget by decree – though jurists say this is a legal grey area and the political cost would be huge.
Macron’s opponents also could vote down one prime minister after the next.
ECONOMIC PAIN
The upheaval is not without risk for Le Pen.
Macron allies sought to present her as an agent of chaos after her party joined forces with the left to down Barnier.
“The French will harshly judge the choice you are going to make,” Laurent Wauquiez, a lawmaker from the conservative Les Republicains party who backs Macron, told Le Pen in parliament.
Since Macron called the summer snap election, France’s CAC 40 benchmark stock market index has dropped nearly 10% and is the heaviest loser among top EU economies.
The euro EUR=EBS showed little immediate reaction versus the dollar, trading for around $1.05 per euro, but dipping against other European currencies, such as the Swiss franc and the pound .
“I’m amazed the euro hasn’t moved much,” said Nick Rees, senior foreign exchange market analyst at Monex Europe. “There are two major powers in Europe, France and Germany, both of which right now are emasculated.”
Barnier’s draft budget had sought to cut the fiscal deficit from a projected 6% of national output this year to 5% in 2025. Voting down his government would be catastrophic for state finances, he had said.
Le Pen shrugged off the warning. She said her party would support any eventual emergency law that rolls over the 2024 budget’s tax-and-spend provisions into next year to ensure there is stopgap financing.
($1 = 0.9513 euro)
World
Venezuela earthquake death toll nears 1,500 as race to find survivors intensifies
The powerful magnitude 7.2 and 7.5 earthquakes struck on Wednesday, devastating the coastal state of La Guaira, about 40 kilometres north of Caracas.
The death toll from Venezuela’s devastating twin earthquakes has climbed to nearly 1,500 as rescue teams continue searching for survivors trapped beneath collapsed buildings, with authorities warning that time is running out.
The powerful magnitude 7.2 and 7.5 earthquakes struck on Wednesday, devastating the coastal state of La Guaira, about 40 kilometres north of Caracas. Officials say the disaster has left more than 3,100 people injured, displaced over 12,700 residents and destroyed at least 774 buildings.
Acting President Delcy Rodríguez said rescue operations would continue after emergency crews recovered additional survivors on Sunday.
“Rescue and recovery efforts are ongoing. Today we have recovered people alive, and therefore operations are not being suspended. We always maintain hope,” she said.
Rodríguez also announced the formation of a presidential commission to assess the structural safety of damaged buildings, extended the suspension of school classes for another week and said electricity had been restored to around 75 percent of La Guaira.
More than 2,600 international rescue workers have joined Venezuelan emergency teams, searching through mountains of rubble with the help of specialised equipment and rescue dogs. Several survivors, including children, have been pulled alive from collapsed buildings in recent days.
Among the latest rescues were an infant freed by US rescue personnel, an 11-year-old boy rescued by Colombian teams after being trapped three metres beneath rubble, and another 11-year-old saved by Mexican crews. Officials say such rescues are becoming increasingly rare as the critical 72-hour survival window passes.
Swiss rescue team leader Sebastian Eugster said the chances of finding survivors decrease significantly after the first three days.
“There exists a window of roughly 72 hours where the probability of rescuing people alive is much higher,” he said.
Authorities say nearly 50,000 people remain unaccounted for, although that figure is based largely on reports submitted through an opposition-backed missing persons website and has not been independently verified.
The United States Geological Survey has warned the final death toll could exceed 10,000, potentially making the disaster one of the deadliest earthquakes in Latin America in the past century.
The catastrophe has also disrupted the country’s energy sector. Venezuela’s largest oil refinery, the 645,000-barrel-per-day Amuay refinery, suspended operations following a major power outage in western Falcón state.
International aid continues to arrive, with the United States expected to announce an additional humanitarian assistance package worth hundreds of millions of dollars, on top of the $150 million already pledged.
The earthquakes have struck Venezuela at a time of ongoing political and economic instability, further complicating relief efforts as authorities, volunteers and international rescue teams continue the search for survivors.
World
Saudi Aramco helicopter crash kills 14 nationals, state news agency says
A helicopter belonging to Saudi oil giant Aramco crashed on Sunday in Ras Tanura on Saudi Arabia’s eastern coast on the Gulf, west of the Strait of Hormuz, killing 14 nationals, the state news agency reported, adding that the cause was unknown.
Aramco had resumed crude oil loadings on Friday at its Ras Tanura terminal in the Gulf after they were halted for nearly four months, Reuters reported.
“The relevant authorities have launched a full investigation to determine the cause of the crash,” the state news agency added.
Aramco did not respond immediately to an emailed request for comment.
The incident took place at 6 a.m. local time (0300 GMT), the state agency said, without providing further details.
Saudi Arabia, the world’s biggest oil exporter, has joined a rush to move cargoes after Middle East producers ramped up oil and gas output and exports ahead of an interim deal to halt the war between the United States and Iran.
World
Israel, Lebanon sign initial agreement after US-mediated talks
Israeli Prime Minister Benjamin Netanyahu said the agreement allows Israeli forces to continue to occupy southern Lebanon if Hezbollah does not disarm.
Israel and Lebanon signed a framework agreement in Washington on Friday following several days of talks to secure an end to fighting between Israel and Iran-backed Hezbollahmilitants, though both sides framed the deal as an initial step, Reuters reported.
Lebanese Ambassador Nada Moawad and her Israeli counterpart Yechiel Leiter signed the trilateral document with the U.S. at the State Department in Washington, providing few details.
Israeli Prime Minister Benjamin Netanyahu said the agreement allows Israeli forces to continue to occupy southern Lebanon if Hezbollah does not disarm.
“Today we’ve taken the first step in what will be a difficult journey, without a doubt, but an important and an essential and a necessary one,” U.S. Secretary of State Marco Rubio said before the agreement was inked.
In a later statement he said that the U.S. would facilitate the implementation of the deal through a trilateral “Military Coordination Group for Lebanon” and that Washington would commit significant resources, including an immediate $100 million in humanitarian assistance in coordination with the U.N.
Rubio added that the U.S. reaffirmed its intent to improve the capabilities of the Lebanese Armed Forces “to more effectively establish sovereignty throughout Lebanese territory” with more than $30 million in funds under existing U.S. authorities and appropriations.
The conflict between Israel and Hezbollah broke out when the armed group fired at Israel on March 2, days after the U.S. and Israel attacked Iran. The Hezbollah attacks triggered Israeli air and ground attacks that have killed more than 4,000 people in Lebanon and displaced more than a million.
Lebanon’s Moawad also called it a “first step” on the road to restoring Lebanese sovereignty.
“Iran is out, Hezbollah is out, and the road to peace between Israel and Lebanon is in,” Leiter said.
Netanyahu said in a statement that the deal would also allow the Lebanese army “to begin organizing to take control of territory,” starting with what he described as two “pilot zones” from which Israeli troops would withdraw from land they occupied during the war.
Israel describes that territory as a “security zone” or “buffer zone” where its troops can thwart Hezbollah attacks on northern Israel.
Lebanese President Joseph Aoun said the agreement should allow Lebanese to return to “fully liberated” land and rebuilt homes with “no partner” in its sovereignty.
Israel’s death toll from this round of hostilities with Hezbollah includes at least 32 soldiers and four Israeli civilians. Hezbollah does not release figures on its war dead. Reuters reported on May 4 that several thousand Hezbollah fighters had been killed in the war.
A State Department official told Reuters on Thursday that Israel had agreed to pull back from some of the territory it has occupied, something Israeli and Lebanese officials denied.
Before the talks resumed this week, Israel and Hezbollah agreed to halt fire even as Israel kept troops in southern Lebanon.
Violence has persisted since the ceasefire, with Israel saying on Friday its troops had struck and killed what the military described as seven Hezbollah members who were operating near the territory it is occupying. Reuters could not confirm this.
“To the degree that the Lebanese army performs in dismantling and disarming Hezbollah, we will proceed with additional pilot zones and the ultimate determination of an internationally recognized, secure, and agreed upon border,” Leiter told reporters after the signing.
Hezbollah lawmaker Hassan Fadlallah said Lebanese authorities would not be able to enforce the agreement unless, with U.S. support, “they go to civil war,” pro-Iranian broadcaster Al Mayadeen reported, read the report.
Hezbollah would confront any measure taken by Lebanese authorities and would hold on to its weapons even more, adding that the group’s opposition was “serious” and would not allow authorities to implement their commitments on the ground, Fadlallah said.
Israeli forces dropped leaflets over the southern Lebanese town of Mansouri on Friday ordering residents to leave, Lebanese state media reported, the first such order issued since the latest ceasefire between Israel and Hezbollah took effect.
A senior Lebanese military official said Israel had recently added Mansouri to its occupation zone. The official said Lebanese farmers had continued to enter and leave the town, but had not been living there.
An Israeli military spokesperson said the military issued what it described as a “reminder” to the civilian population that “the area is within the security zone in which (Israeli) soldiers operate. It’s a reminder not to be in the area so they won’t be harmed.”
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