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
US, Russian officials meet in Florida for more Ukraine talks
Kyiv says it will not cede land that Moscow’s forces have failed to capture in nearly four years of war.
U.S. negotiators met Russian officials in Florida on Saturday for the latest talks aimed at ending Russia’s war in Ukraine, as President Donald Trump’s administration tries to coax an agreement out of both sides to end the conflict, Reuters reported.
The Miami meeting followed U.S. talks on Friday with Ukrainian and European officials, the latest discussions of a peace plan that has sparked some hope of a resolution to the conflict that began when Russia launched its full-scale invasion in February 2022.
Russian President Vladimir Putin’s special envoy Kirill Dmitriev told reporters after meeting U.S. special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner that the talks were constructive and would continue on Sunday. A White House official said the talks had concluded for the day.
“The discussions are proceeding constructively. They began earlier and will continue today, and will also continue tomorrow,” Dmitriev said.
Marco Rubio, Trump’s top diplomat and national security advisor, had said he might also join the talks.
U.S., Ukrainian and European officials earlier this week reported progress on security guarantees for Kyiv as part of the talks to end the war, but it remains unclear if those terms will be acceptable to Moscow.
A Russian source told Reuters that any meeting between Dmitriev and the Ukrainian negotiators had been ruled out.
In Kyiv, Ukrainian President Volodymyr Zelenskiy said on Saturday that Ukraine would back a U.S. proposal for three-sided talks with the United States and Russia if it facilitated more exchanges of prisoners and paved the way for meetings of national leaders.
“America is now proposing a trilateral meeting with national security advisers — America Ukraine, Russia,” Zelenskiy told local journalists in Kyiv.
U.S. intelligence reports continue to warn that Putin intends to capture all of Ukraine, sources familiar with the intelligence said, contradicting some U.S. officials’ assertions that Moscow is ready for peace.
Putin offered no compromise during his annual press conference in Moscow, insisting that Russia’s terms for ending the war had not changed since June 2024, when he demanded Ukraine abandon its ambition to join NATO and withdraw entirely from four Ukrainian regions Russia claims as its own territory, Reuters reported.
Kyiv says it will not cede land that Moscow’s forces have failed to capture in nearly four years of war.
Ukraine’s top negotiator Rustem Umerov said U.S. and European teams on Friday held talks and agreed to pursue their joint efforts.
“We agreed with our American partners on further steps and on continuing our joint work in the near future,” Umerov wrote on Telegram of the discussions in the United States, adding that he had informed Zelenskiy of the outcome of the talks.
The White House did not immediately respond to a request for comment.
Rubio told reporters on Friday that progress has been made in discussions to end the war but there is still a way to go.
“The role we’re trying to play is a role of figuring out whether there’s any overlap here that they can agree to, and that’s what we’ve invested a lot of time and energy and continue to do so. That may not be possible. I hope it is. I hope it can get done this month before the end of the year.”
World
US hits Daesh in Syria with large retaliatory strikes, officials say
The U.S. military launched large-scale strikes against dozens of Daesh targets in Syria on Friday in retaliation for an attack on American personnel, U.S. officials said.
A U.S.-led coalition has been carrying out airstrikes and ground operations in Syria targeting Islamic State suspects in recent months, often with the involvement of Syria’s security forces, Reuters reported.
President Donald Trump had vowed to retaliate after a suspected ISIS attack killed U.S. personnel last weekend in Syria.
Defense Secretary Pete Hegseth said the strikes targeted “ISIS fighters, infrastructure, and weapons sites” and that the operation was “OPERATION HAWKEYE STRIKE.”
“This is not the beginning of a war — it is a declaration of vengeance,” Hegseth said. “Today, we hunted and we killed our enemies. Lots of them. And we will continue,” he added.
Trump said on social media that the Syrian government fully supported the strikes and that the U.S. was inflicting “very serious retaliation.”
U.S. Central Command said the strikes hit more than 70 targets across central Syria, adding that Jordanian fighter jets supported the operation.
One U.S. official said the strikes were carried out by U.S. F-15 and A-10 jets, along with Apache helicopters and HIMARS rocket systems.
Syria reiterated its steadfast commitment to fighting Daesh and ensuring that it has “no safe havens on Syrian territory,” according to a statement by the foreign ministry.
Two U.S. Army soldiers and a civilian interpreter were killed on Saturday in the central Syrian town of Palmyra by an attacker who targeted a convoy of American and Syrian forces before being shot dead, according to the U.S. military. Three other U.S. soldiers were also wounded in the attack.
About 1,000 U.S. troops remain in Syria.
The Syrian Interior Ministry has described the attacker as a member of the Syrian security forces suspected of sympathizing with Daesh.
Syria’s government is led by former rebels who toppled leader Bashar al-Assad last year after a 13-year civil war, and includes members of Syria’s former Al Qaeda branch who broke with the group and clashed with Daesh.
Syria has been cooperating with a U.S.-led coalition against Daesh, reaching an agreement last month when President Ahmed al-Sharaa visited the White House.
World
EU leaders agree joint borrowing to fund Ukraine, setting aside plan to use Russian frozen assets
European Union leaders decided on Friday to borrow cash to fund Ukraine’s defence against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an unprecedented plan to finance Kyiv with Russian sovereign cash.
“Today we approved a decision to provide 90 billion euros to Ukraine,” EU summit chairman Antonio Costa told a news conference early on Friday morning after hours of talks among the leaders in Brussels, Reuters reported. “As a matter of urgency, we will provide a loan backed by the European Union budget.”
The leaders also gave the European Commission a mandate to keep working on a so-called reparations loan based on Russian immobilised assets but that option proved unworkable for now, above all due to resistance from Belgium, where the bulk of the assets is held.
The idea of EU borrowing initially seemed unworkable as it requires unanimity and Hungary’s Russia-friendly Prime Minister Viktor Orban had opposed it. But Hungary, Slovakia and the Czech Republic agreed to let the scheme go ahead as long as it did not impact them financially.
The EU leaders said Russian assets, totalling 210 billion euros in the EU, will remain frozen until Moscow pays war reparations to Ukraine. If Moscow ever takes such a step, Ukraine could then use they money to pay back the loan.
USE OF RUSSIAN ASSETS TO COMPLEX AT THIS STAGE
“This is good news for Ukraine and bad news for Russia and this was our intention,” German Chancellor Friedrich Merz said.
The stakes for finding money for Kyiv were high because without the EU’s financial help, Ukraine would run out of money in the second quarter of next year and most likely lose the war to Russia, which the EU fears would bring closer the threat of Russian aggression against the bloc.
The decision follows hours of discussions among leaders on the technical details of an unprecedented loan based on the frozen Russian assets, which turned out to be too complex or politically demanding to resolve at this stage.
The main difficulty was providing Belgium, where 185 billion euros of the total Russian assets in Europe are held, with sufficient guarantees against financial and legal risks from potential Russian retaliation for the release of the money to Ukraine.
“There were so many questions on the Reparations Loan, we had to go to Plan B. Rationality has prevailed,” Belgian Prime Minister Bart De Wever told a news conference. “The EU has avoided chaos and division and remained united,” he said.
HUNGARY SCORES A WIN
With public finances across the EU already strained by high debt levels, the European Commission had proposed using the Russian assets for a loan to Kyiv or joint borrowing against the EU budget.
Using the latter option allowed Orban to claim a diplomatic victory.
“Orban got what he wanted: no reparation loan. And EU action without participation of Hungary, Czech Republic and Slovakia,” one EU diplomat said.
‘CAN’T AFFORD TO FAIL’
Several EU leaders arriving at the summit said it was imperative they find a solution to keep Ukraine financed and fighting for the next two years. They were also keen to show European countries’ strength and resolve after U.S. President Donald Trump last week called them “weak”.
“We just can’t afford to fail,” EU foreign policy chief Kaja Kallas said.
Ukrainian President Volodymyr Zelenskiy, who took part in the summit, urged the bloc to agree to use the Russian assets to provide the funds he said would allow Ukraine to keep fighting.
“The decision now on the table – the decision to fully use Russian assets to defend against Russian aggression – is one of the clearest and most morally justified decisions that could ever be made,” he said.
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