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French government felled in no-confidence vote, deepening political crisis

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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)

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Saudi Arabia executes two people for plotting attacks on places of worship

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Saudi Arabia said on Sunday that it had executed two citizens for joining a terrorist group that planned to carry out attacks on places of worship.

The two men also planned attacks against security facilities and personnel, Saudi state news agency SPA reported, citing a statement from the interior ministry.

The statement did not indicate when any of the attacks were planned to have taken place, Reuters reported.

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North Korea threatens ‘offensive action’, condemns US-South Korea security talks

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North Korea’s defence minister No Kwang Chol threatened on Saturday to take “more offensive action” as he condemned U.S. security talks with Seoul and the arrival of a U.S. aircraft carrier in South Korea.

A day earlier, North Korea fired a ballistic missile towards the sea off its east coast, after denouncing on Thursday fresh U.S. sanctions against North Korean individuals and entities that Washington said were involved in cyber-related money-laundering schemes, Reuters reported.

South Korea’s defence ministry on Saturday condemned the missile launch, while saying the North’s criticism of the U.S.-South Korea meeting was regrettable.

No criticised a recent visit by U.S. and South Korean defence chiefs to the border between North and South Korea, as well as their subsequent security talks in Seoul, alleging they were conspiring to step up deterrence efforts towards the North and to integrate their nuclear and conventional forces.

“This is a stark revelation and an unveiled intentional expression of their hostile nature to stand against the DPRK to the end,” No said, referring to the country’s formal name – the Democratic People’s Republic of Korea.

U.S. Defense Secretary Pete Hegseth said on Tuesday the core of the alliance with Seoul will remain focused on deterring North Korea, although Washington will look at flexibility for U.S. troops stationed in South Korea to operate against regional threats.

No also said the visit of the U.S. nuclear-powered aircraft carrier George Washington to South Korea’s southeastern port city of Busan this week following U.S.-South Korean joint air drills with Seoul had escalated tensions on the peninsula.

“We will show more offensive action against the enemies’ threat on the principle of ensuring security and defending peace by dint of powerful strength,” No said, according to North Korean state media KCNA.

South Korea’s navy said the carrier’s visit was to replenish supplies and grant leave for the crew.

While visiting South Korea last week, U.S. President Donald Trump repeated his willingness to sit down with North Korean leader Kim Jong Un. No meeting took place, but Trump said he was willing to return to the region to meet Kim.

Last week, North Korea also test-fired cruise missiles to the west of the Korean peninsula just as Trump and other leaders were set to gather in South Korea for regional meetings.

Regarding the latest missile launch, the U.S. Indo-Pacific Command said on Saturday that it “does not pose an immediate threat to U.S. personnel or territory, or to our allies”.

“The missile launch highlights the destabilising impact” of North Korea’s actions, it added.

 

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US military to establish presence at Damascus airbase – Reuters

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The United States is preparing to establish a military presence at an airbase in Damascus to help enable a security pact that Washington is brokering between Syria and Israel, Reuters reported citing sources familiar with the matter.

The U.S. plans for the presence in the Syrian capital, which have not previously been reported, would be a sign of Syria’s strategic realignment with the U.S. following the fall last year of longtime leader Bashar al-Assad, an ally of Iran.

The base sits at the gateway to parts of southern Syria that are expected to make up a demilitarised zone as part of a non-aggression pact between Israel and Syria. That deal is being mediated by U.S. President Donald Trump’s administration.

TRUMP SET TO MEET SYRIAN PRESIDENT ON MONDAY

Trump will meet Syrian President Ahmed al-Sharaa at the White House on Monday, the first such visit by a Syrian head of state.

Reuters spoke to six sources familiar with preparations at the base, including two Western officials and a Syrian defence official, who confirmed the U.S. was planning to use the base to help monitor a potential Israel-Syria agreement.

After publication, a Syrian foreign ministry source denied the Reuters report, saying it was “false”, state news agency SANA reported late on Thursday.

The source did not elaborate on what was false.

“Work is underway to transfer the partnerships and understandings that were necessarily made with provisional entities to Damascus, within the framework of joint political, military and economic coordination,” SANA added, citing the source.

The Pentagon and Syrian foreign ministry did not immediately respond to requests for comment on the plan. The Syrian presidency and defence ministry did not immediately respond to questions about the plan sent via the Syrian information ministry.

A U.S. administration official said the U.S. was “constantly evaluating our necessary posture in Syria to effectively combat ISIS (Islamic State) and (we) do not comment on locations or possible locations of (where) forces operate.”

The official requested that the name and location of the base be removed for operational security reasons. Reuters has agreed to not reveal the exact location.

A Western military official said the Pentagon had accelerated its plans over the last two months with several reconnaissance missions to the base. Those missions concluded the base’s long runway was ready for immediate use.

Two Syrian military sources said the technical talks have been focused on the use of the base for logistics, surveillance, refueling and humanitarian operations, while Syria would retain full sovereignty over the facility.

A Syrian defence official said the U.S. had flown to the base in military C-130 transport aircraft to make sure the runway was usable. A security guard at one of the base’s entrances told Reuters that American aircraft were landing there as part of “tests”.

It was not immediately clear when U.S. military personnel would be dispatched to the base.

JOINT SYRIAN-AMERICAN PRESENCE

The new U.S. plans appear to mirror two other new U.S. military presences in the region monitoring cessation of hostilities agreements: one in Lebanon, which closely watches last year’s ceasefire between Lebanese armed group Hezbollah and Israel, and one in Israel that monitors the Trump-era truce between Palestinian military group Hamas and Israel.

The U.S. already has troops stationed in northeastern Syria, as part of a decade-long effort to help a Kurdish-led force there combat Islamic State. In April, the Pentagon said it would halve the number of troops there to 1,000.

Sharaa has said any U.S. troop presence should be agreed with the new Syrian state. Syria is set to imminently join the U.S.-led global anti-ISIS coalition, U.S. and Syrian officials say.

A person familiar with the talks over the base said the move was discussed during a trip by Admiral Brad Cooper, commander of the U.S. Central Command (CENTCOM), to Damascus on September 12.

A CENTCOM statement at the time said Cooper and U.S. envoy to Syria Thomas Barrack had met Sharaa and thanked him for contributing to the fight against Islamic State in Syria, which it said could help accomplish Trump’s “vision of a prosperous Middle East and a stable Syria at peace with itself and its neighbors.” The statement did not mention Israel.

The U.S. has been working for months to reach a security pact between Israel and Syria, two longtime foes. It had hoped to announce a deal at the United Nations General Assembly in September but talks hit a last-minute snag.

A Syrian source familiar with the talks told Reuters that Washington was exerting pressure on Syria to reach a deal before the end of the year, and possibly before Sharaa’s trip to Washington.

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