South Korean media: "France is heavily in debt," the prime minister proposed a austerity plan and once again faced a vote of no confidence in parliament, leading to his resignation

¬ Opposition parties oppose freezing welfare and pensions ... France's national debt as a percentage of GDP ranks third in the EU

On the afternoon of the 8th, French Prime Minister François Hollande failed in the confidence vote on the austerity budget, eventually resigning. It was only nine months after the previous cabinet of Michel Barnier fell due to a vote of no confidence over an austerity budget at the end of last year that the same situation occurred again.

The French National Assembly voted on whether to trust the government's austerity budget submitted by Hollande. Of the 574 MPs, 558 voted, with 364 opposing and 194 supporting, ultimately deciding not to trust the prime minister. Left-wing alliances including the Socialist Party and the far-right National Rally (RN) all voted against, while only the ruling party "Together" and some right-wing MPs supported the prime minister. The number of votes for the motion of no confidence was 288. Therefore, Hollande and his cabinet plan to submit their collective resignation letters to President Emmanuel Macron on the morning of the 9th.

Hollande introduced an austerity plan worth 44 billion euros in July last year, which included reducing public holidays, freezing welfare and pension payments, etc. The measure aims to reduce the fiscal deficit, which is close to 6% of GDP, to below 3% by 2029. The plan includes freezing government spending except for defense budgets and abolishing public holidays, which caused strong public opposition. Left-wing forces such as "La France Insoumise" (LFI) criticized it as emphasizing sacrifices for the vulnerable social groups, calling it "regressive austerity." The far right also opposed it, citing rising electricity bills and increased living costs.

Hollande requested a confidence vote last month, urging "to make the people face the harsh reality." In his speech before the vote, he warned, "Although you have the right to overthrow the government, you cannot erase the harsh reality. Expenditure will continue to increase, and the already heavy debt burden will become even heavier and more expensive." But ultimately, he failed to pass the confidence vote, bringing himself into a political crisis. The French newspaper Le Monde commented, "The austerity plan that could not be accepted by either the left or the right has made political unity impossible."

This no-confidence motion forced President Macron to appoint a new prime minister for the fifth time within two years. Since Prime Minister Elizabeth Borne resigned in the summer of 2023, Gabriel Attal, Michel Barnier, and François Hollande were unable to complete their terms due to conflicts over budget and fiscal policies. Barnier's cabinet was overturned by an opposition-sponsored no-confidence motion after forcing through the social security budget using Article 49, paragraph 3 of the Constitution last December.

France's national debt reached 3.3 trillion euros (about 5,200 trillion won) last year, exceeding 113% of GDP. In the eurozone, it ranks third, behind Greece and Italy. The fiscal deficit accounted for 5.8% of GDP, far higher than the eurozone average (about 3.1%), and due to rising interest rates, interest costs also reached a historical high. The Financial Times warned, "France's spending structure is the most rigid among OECD countries. If structural reforms are delayed, it may lead to further credit rating downgrades and bond market turbulence."

The Elysée Palace said on the day: "President Macron will accept the resignation of Hollande's cabinet on the 9th and will appoint a new prime minister soon." However, if the successor prime minister also cannot ensure an absolute majority in the parliament, political turmoil will inevitably continue for a long time. The leftist faction has announced plans to launch an impeachment motion against the president, and the entire opposition circle is spreading the "Macron responsibility theory." The combination of massive government debt and political uncertainty has been evaluated as damaging to France's reputation.

Source: Chosun Ilbo

Original: www.toutiao.com/article/1842774152879114/

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