The future for French Prime Minister Michel Barnier's government looks bleak, with his struggles to push the 2025 budget through a polarised parliament increasingly likely to end in the toppling of his fragile coalition.

A bitter debate is now unfolding inside the ruling class over how to recalibrate its policies, that will confront it, sooner rather than later, with explosive working class opposition.

By Harry Robertson and Amanda Cooper LONDON (Reuters) -French stocks and bonds fell sharply on Wednesday, driving the premium the government pays for long-term borrowing to its highest since the euro zone debt crisis of 2012,

French Prime Minister Michel Barnier faces a significant political challenge as his budget proposal encounters resistance in a divided parliament. His coalition could collapse if a no-confidence motion is pushed by opponents,

French Prime Minister Michel Barnier said the country faces a “storm” in financial markets if an “unlikely but possible” alliance of lawmakers across the political spectrum rejects his government’s budget proposals and votes it out of power.

French lawmakers have spent weeks debating a budget proposal that has threatened to topple Barnier's cabinet. #EuropeNews

France would then have an extended period of seven years to bring public spending in line with key EU parameters. The extension is part of the EU's revamped fiscal framework which allows countries to benefit from a further three years to get their house in order provided they complete a set of pre-agreed reforms with the Commission.