France's government has collapsed after a no-confidence vote, prompting President Emmanuel Macron to search for a new prime minister.

The motion was backed by both far-right and left-wing parties due to a controversial budget proposal. The previous administration, led by Prime Minister Michel Barnier, faced significant criticism for a budget plan that included €60 billion in tax increases and spending cuts aimed at reducing the deficit from an estimated 6.1% of economic output this year to 5% in 2025.

Macron's task now is to appoint a leader capable of navigating a divided parliament to pass the 2025 budget. The president is expected to address the nation on Thursday at 8 p.m., outlining the next steps in this political crisis. The financial implications of this government instability are substantial, as the new prime minister will face the same fiscal pressures that led to Barnier's downfall.