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 MPs have spent weeks debating the Barnier government’s hastily prepared budget, which includes €40 billion in spending cuts and €20 billion in tax hikes. The bill aims to reduce the French budget deficit, which is projected to hit 6.1 percent of gross domestic product in 2024.

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,

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.

PARIS — France's far-right National Rally on Wednesday rejected the idea that a government collapse would lead to a Greek-style financial crisis or to a U.S.-style shutdown, scenarios that have investors worried that political chaos in France could precipitate a eurozone-wide disaster.

French Prime Minister Michel Barnier's government is under threat as the 2025 budget remains stalled in a divisive parliament. A no-confidence motion could topple the coalition by Christmas. Barnier's survival might depend on softening spending cuts,

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

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.

“This is a very serious moment,” Barnier said in an interview with French broadcaster TF1. PARIS — French Prime Minister Michel Barnier said Tuesday that France could face fiscal calamity should lawmakers decide to topple his government over a budget dispute.

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.