French lawmakers have passed a no-confidence motion against Prime Minister Michel Barnier, plunging the country into a deeper crisis that threatens its legislative capacity and efforts to address a substantial budget deficit.

The motion received overwhelming support, with 331 votes in favor.

As a result of the vote, Barnier is now required to submit his resignation, along with that of his government, to President Emmanuel Macron.

This marks the shortest tenure of any government in France’s Fifth Republic since its establishment in 1958, lasting only three months. Reports suggest that Barnier is expected to formally resign on Thursday morning.

The no-confidence motion was fueled by discontent from both far-right and left-wing lawmakers, who reacted strongly to Barnier’s decision to invoke special constitutional powers to pass portions of an unpopular budget without a parliamentary vote.

The budget aimed to achieve 60 billion euros ($63.07 billion) in savings to help reduce a significant fiscal deficit.

The political turmoil in France comes at a precarious time for the European Union, already destabilized by the collapse of Germany’s coalition government and with the impending return of U.S. President-elect Donald Trump to the White House.

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Outgoing Defense Minister Sébastien Lecornu warned that this instability could affect France’s support for Ukraine.

The leftist France Unbowed (LFI) party has called for President Macron’s resignation, while far-right leader Marine Le Pen celebrated Barnier’s fall, positioning her National Rally party as a viable alternative government.

“The pressure on the president will get greater,” she stated, though she refrained from directly calling for Macron’s resignation.

France now faces a period of uncertainty that could unsettle investors in its sovereign bonds and stocks. Earlier this week, the country’s borrowing costs briefly surpassed those of Greece, considered a riskier economy.

Macron is under pressure to swiftly appoint a new prime minister, with hopes to do so before the reopening ceremony of the Notre-Dame Cathedral on Saturday, which Trump is scheduled to attend.

The incoming prime minister will face similar challenges in navigating a fragmented parliament and passing critical legislation, including the 2025 budget. With no parliamentary elections possible before July, Macron may opt to keep Barnier’s government in a caretaker role while he seeks a leader capable of garnering cross-party support for new legislation.

Should a caretaker government be established, it could propose emergency measures to extend the 2024 budget or invoke special powers to pass the 2025 budget by decree, although this approach remains legally contentious.

The ongoing instability is not without risks for Le Pen, whose party’s alliance with the left to oust Barnier has been characterized by Macron’s allies as a move that could lead to chaos.

Since Macron’s summer snap election, the CAC 40 index has dropped nearly 10%, making it the worst performer among major EU economies.

While the euro showed little immediate reaction against the dollar, it weakened against other European currencies, highlighting the concerns surrounding France’s political and economic trajectory.

Barnier’s budget aimed to reduce the fiscal deficit from 6% of GDP this year to 5% by 2025, and the rejection of his government could have severe implications for state finances.

However, Le Pen indicated her party would support any emergency legislation necessary to ensure continued funding for government operations.